Ireland’s finance minister, Michael Noonan, has signed into effect regulations that mean asset managers can establish the EU’s new investment vehicle, known as European Long-term Investment Funds (Eltifs), in the country.
The EU introduced Eltifs yesterday in a move that could see asset managers fill a vacuum in bank lending and provide a boost to the European economy, which Eltifs are designed to do.
Eltifs are to be run by asset managers as alternative investment funds and Noonan says the Central Bank of Ireland says it is ready to accept applications.
Pat Lardner, chief executive of Irish Funds, Ireland’s funds industry association, says Ireland is well positioned as a domicile for these funds.
“Eltifs represent a key component of the European Commission’s initiative on Capital Markets Union and aim to promote cross-border long-term investment in projects such as infrastructure, sustainable energy and new technologies. As a leading centre for cross-border alternative investment funds, Ireland is well-positioned as a location to domicile, manage and service Eltifs.”
He says Ireland already has experience of servicing long-term investment funds that target areas Eltifs may target, such as infrastructure and new technologies.
Luxembourg is also intent on attracting Eltif managers and yesterday the Association of the Luxembourg Fund Industry (Alfi) welcomed their introduction.
Ireland says that in October it will propose enhancements to the Eltif framework in its submission to the European Commission’s call for evidence on the EU regulatory framework for financial services.
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