

In the 9th issue of our “3 Questions 2” (3Q2) series, we spoke with Stuart Corrigall, Chair of the EFAMA Fund Regulation Standing Committee and Managing Director at BlackRock, on ELTIF 2.0.
He answers the following questions:
1: What is an ELTIF, and why did the current ELTIF regime need to be revised?
2: What are the major changes the review process introduced?
3: In light of those changes, is ELTIF 2.0 going to be successful?
EFAMA has today published its latest monthly Investment Fund Industry Fact Sheet, which provides net sales data on UCITS and AIFs for November 2022, at European level and by country of fund domiciliation.
The ongoing review of MiFIDII/MiFIR is an important moment for the future success of the Capital Markets Union project. The European Council adopted their position at the end of last year and the European Parliament is currently debating these future rules, with the expectation of a draft report by the end of the month.
The MiFID/MiFIR review will be key to the future success and competitiveness of the EU's capital markets.
With international competition for investment heating up markedly, European legislators need to ensure that EU regulation is helping, and not hindering, capital market growth and participation.
Various European trade associations representing EU capital markets, including EFAMA, BVI, EFSA and NSA, have published a letter outlining their main priorities for the review. This includes the following core elements:
In an environment with unclear definitions at EU level on key sustainable finance concepts, as well as a lack of complete, comparable and transparent ESG data, all market actors are concerned about the risk of greenwashing.
In an environment with unclear definitions at EU level on key sustainable finance concepts, as well as a lack of complete, comparable and transparent ESG data, all market actors are concerned about the risk of greenwashing.
EFAMA has today published its latest monthly Investment Fund Industry Fact Sheet, which provides net sales data on UCITS and AIFs for October 2022, at European level and by country of fund domiciliation.
EFAMA considers the Sustainable Finance Disclosure Regulation (SFDR) and its accompanying technical standards essential pieces in a strong and ambitious framework for sustainable investing. Its feedback aims at improving the effectiveness and feasibility of the ESAs’ proposal, as well as strengthening this regulation’s synergies with existing and upcoming rules.
A holistic approach is recommended when establishing whether the use of leverage of AIFs poses leverage-related systemic risk and materially contributes to financial instability. Any regulatory policies on leverage need to be evidence-based and developed with empirical evidence showing the extent to which the use of leverage in AIFs contributes to the build-up of systemic risk. The Covid-19 pandemic is testament that no major dysfunction was reported in terms of use of leverage by AIFs.
As highlighted in President’s von der Leyen guidelines for the new Commission, the complexity and sophistication of the Union’s financial system has opened the door to new risks of money laundering and terrorist financing. The European Union needs to step up its regulatory framework and preventive architecture to ensure that no loopholes or weak links in the internal market allow criminals to use the EU to launder the proceeds of their illicit activities.

Discover the 6 reasons why your organisation should become a member of EFAMA.
Our members enjoy significant benefits including the opportunity to shape the industry positions, get first-hand access to regulatory and political intelligence, engage with industry peers and policymakers, and take part in EFAMA events.
Our three membership categories cater to the wide range of organisations that make up and support the investment management industry in Europe.