As part of this series, we asked Mike Sommer, head of risk & compliance Europe / board member and conducting officer risk & compliance at Schroders, about how Eltif 2.0 would impact Luxembourg, and, in particular, expand access to assets. Sommer told Delano:

“We believe that the upcoming changes in the Eltif regulation will have a positive impact on capital raising going forward. On the investment side, it introduces additional flexibility on the types of instruments Eltifs can invest into. Examples are the lower threshold for eligible assets and the broadening of the definition of what constitutes an eligible asset. This will certainly help to attract new investors looking for exposure to long-term assets by increasing the range of strategies that can be offered within an Eltif wrapper.

“A further positive impact is expected from the changes to the Eltif suitability rules. The changes support a more pragmatic approach in terms of the access criteria that distributors need to adhere to, for example, whether an investor is eligible based on the size of their portfolio and how much they are planning on investing. Feedback from our client facing business partners indicates that the current rules made compliance monitoring very complex and expensive. They will certainly welcome the changes.”

Sommer stated: “Luxembourg’s fund industry with its extensive capabilities is well placed to participate from the expected benefits of the adjusted Eltif regulation.”

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