ELTIF 2.0. 24-hour authorisation will apply to “Qualifying Investor” ELTIFs in Ireland

The Central Bank of Ireland (CBI) has confirmed its intended approach for ELTIF authorisations in Ireland, with the 24-hour authorisation process for “Qualifying Investor” AIFs being made available for “Qualifying Investor” ELTIFs.

As previously advised, the CBI is updating its AIF Rulebook enabling the authorisation in Ireland of ELTIFs using Ireland’s popular regulated fund vehicles, including the ICAV. Importantly, the ELTIF will benefit from the well understood Irish tax regime applicable to Irish regulated funds.

The CBI has confirmed that:

  • The 24-hour authorisation for Qualifying Investor AIFs will be available for ELTIFs which are offered only to Professional Investors (as defined in the ELTIF Regulation) or to Qualifying Investors (as defined in the AIF Rulebook).
  • This will deliver significantly enhanced speed to market for managers of Qualifying Investor ELTIFs authorised in Ireland.
  • There will be no ‘gold-plating’ of the EU ELTIF Regulation for ELTIFs authorised in Ireland.
  • The ELTIF chapter of the AIF Rulebook is expected to be published in March 2024 with updated ELTIF application forms being published in parallel. The CBI will then be in a position to authorise ELTIFs.
  • It is expected that the use of umbrella structures to establish ELTIF sub-funds will be permitted, with it being possible to establish ELTIF and non-ELTIF sub-funds in the same umbrella. Therefore, existing, or new Retail Investor AIF umbrella structures and Qualifying Investor AIF umbrella structures would be able to incorporate Retail Investor or Qualifying Investor ELTIFs (as applicable) with non-ELTIF sub-funds, subject to certain requirements.
  • Where an ELTIF is distributed to Qualifying Investors as defined in the AIF Rulebook, and that ELTIF is not restricted to Professional Investors only, the Retail Investor requirements set out in the ELTIF Regulation will be applied to that ELTIF (such as portfolio diversification rules and cash borrowing limits).
  • The CBI will be making other enhancements to its original ELTIF consultation proposals aimed to provide greater flexibility around the applicability of certain existing AIF Rulebook requirements.

The CBI’s approach to the authorisation of ELTIFs under the enhanced ELTIF framework will be welcome news to fund managers seeking to establish ELTIF funds in Ireland for professional and/or retail distribution and benefitting from the EU marketing passport. We will keep you updated on further developments.

For more information on this topic please contact any member of A&L Goodbody’s Asset Management and Investment Funds’ team.

Date published: 30 January 2024