Alternative Investment Fund Manager Directive
The Alternative Investment Fund Managers Directive aims to enhance oversight of macro-prudential risks arising from alternative investment funds (AIFs). It requires all AIFMs within scope to be authorised and subject to harmonised regulatory standards. At the same time, it permits AIFMs to market funds to investors throughout the EU with an AIFMD passport.
Revisions to AIFMD, released on 6 November 2023, introduce changes to rules for loan-originating funds, liquidity management and reporting of delegation arrangements.
Documents
EREF does not take positions on regulatory issues. However, many participating organisations have developed their own positions. To learn more, please view the individual participating organisations’ websites.
Disclaimer
The content and views expressed in the documents published on this website are the sole responsibility of the undersigned organisations of concerning document and may not represent the views of all participants in this Forum.
Alternative Investment Fund Manager Directive
The Alternative Investment Fund Managers Directive aims to enhance oversight of macro-prudential risks arising from alternative investment funds (AIFs). It requires all AIFMs within scope to be authorised and subject to harmonised regulatory standards. At the same time, it permits AIFMs to market funds to investors throughout the EU with an AIFMD passport.
Revisions to AIFMD, released on 6 November 2023, introduce changes to rules for loan-originating funds, liquidity management and reporting of delegation arrangements.
Documents
EREF does not take positions on regulatory issues. However, many participating organisations have developed their own positions. To learn more, please view the individual participating organisations’ websites.
Disclaimer
The content and views expressed in the documents published on this website are the sole responsibility of the undersigned organisations of concerning document and may not represent the views of all participants in this Forum.
European Long-Term Investment Fund Directive
ELTIF 2.0 aims to enhance European Long-Term Investment Funds (ELTIFs), managers of which have a pan-European passport for marketing to professional and retail investors. Effective from 10 January 2024, revisions include increased asset flexibility, simplified definitions and adjusted borrowing limits, emphasising long-term investments in sectors such as real estate and infrastructure. Marketing requirements are refined, introducing a suitability test for retail investors and transparent disclosures.
ELTIF 2.0 also broadens eligible real assets, including real estate. It enhances flexibility for ELTIF managers by allowing investments in related vehicles and team co-investments. Diversification rules are eased, and a redemption mechanism is introduced, addressing limitations and promoting long-term project investment.
Documents
EREF does not take positions on regulatory issues. However, many participating organisations have developed their own positions. To learn more, please view the individual participating organisations’ websites.Â
Disclaimer
The content and views expressed in the documents published on this website are the sole responsibility of the undersigned organisations of concerning document and may not represent the views of all participants in this Forum.
Real estate investment trusts
Real estate investment trusts (REITs) are publicly listed property investment companies that own, operate, develop, and manage real estate assets for obtaining returns from rental income and capital appreciation. REITs are open to both retail and institutional investors. Up to now, REIT frameworks have been implemented in fourteen European countries, encompassing 13 EU member states and the UK.
Due to the legal requirement to distribute most of that income annually, REITs do not pay income tax on income related to immovable property that is so distributed, ensuring a single layer of taxation in the hands of the investors.
Despite common features, there may be differences between countries as regards how REITs are structured and how the tax exemption of the income is provided. In some countries, REITs were developed using the tax rules generally applicable to trusts and companies; in others, a specific REIT tax regime has been adopted.
Due to these differences and the potential for fragmentation, continuous efforts are being made to harmonise and facilitate the coexistence and success of these regimes.
Documents
EREF does not take positions on regulatory issues. However, many participating organisations have developed their own positions. To learn more, please view the individual participating organisations’ websites.
Disclaimer
The content and views expressed in the documents published on this website are the sole responsibility of the undersigned organisations of concerning document and may not represent the views of all participants in this Forum.
Directive on the Taking-up and Pursuit of the Business of Insurance and Reinsurance
Solvency II creates a single market for insurance services in Europe and harmonises the capital adequacy requirements of European insurers since 2016.
Research shows that the Solvency II standard model SCR for real estate does not reflect the actual volatility of real estate investment across Europe. This fact has been raised in meetings with policy makers in the European Parliament, Commission and Council, as well as EIOPA (European Insurance and Occupational Pensions Authority). It has also been addressed in many EREF members’ relevant regulatory consultation responses, including the Capital Markets Union, which is focused on removing obstacles created by EU financial regulations and increasing long-term investment in Europe.
The review of Solvency II launched in 2021 did not include proposals to change the SCR for real estate or to expand the matching adjustment eligibility. However, the criteria to qualify for the long-term equity SCR, which reduces the requirement from 39% to 22% for inter alia REITs and property companies, will be expanded.
Documents
MSCI Solvency II update report (Mar 2017)
Summary: This report offers a detailed review of the Solvency ll risk based regulatory framework proposed for defining insurance company capital adequacy. The study focuses specifically on real estate and was funded by a consortium of six key trade bodies, each supporting an aspect of insurance company investment in property and more broadly.
Disclaimer
The content and views expressed in the documents published on this website are the sole responsibility of the undersigned organisations of concerning document and may not represent the views of all participants in this Forum.