AIFMD & ELTIF

INREV recommends that the EU adopt a coordinated, long-term strategy that recognises housing as strategic infrastructure. The response also calls for stable policy frameworks that align public objectives with institutional capital and ensure that affordability and climate goals are pursued together. We encourage the EU to play a central role in harmonising regulations, sharing best practices, and embedding housing within wider EU priorities.

INREV recommends the European Commission address regulatory fragmentation by recognising group-wide compliance structures, simplifying cross-border processes, and aligning national rules. Targeted reforms are needed to streamline reporting, enable innovation, and support a more integrated and competitive EU real estate fund market.

INREV encourages stronger EU-level action to address regulatory fragmentation in the non-listed real estate sector. The response calls for harmonised, principles-based regulations, stronger supervisory coordination, and greater alignment with international regimes to boost efficiency, cut costs, and unlock investment across borders.

The response emphasises the importance of applying relevant LMTs, rather than all listed in the proposal. It highlights the semi-open-ended nature of real estate funds and suggests flexibility in adjusting both the target proportion and actual amount of liquid assets, considering the overall portfolio composition.

The consolidated text of AIFMD Level 1 and 2, as amended by the AIFMD II and other EU legislation prepared by A&O Shearman includes changes from the Securitisation Regulation, Cross Border Funds Directive and SFDR.

Amendments introduced by AIFMD II at Level 1 are highlighted in green (for additions) and red (for deletions), thus precisely indicating AIFMD II's impact and providing a steer for practitioners to navigate the text. Level 2 AIFMD and other Level 2 applicable EU legislation are included in textboxes or are annexed as exhibits.

INREV response to ESMA consultation on Liquidity Management Tools for funds argued for principles based rules retaining investment managers’ discretion in the choice and design of LMTs and avoiding prescriptive measures.

Read INREV’s latest snapshot on AIFMD II to find out how new provisions apply to non-listed real estate investment.

Read more about our latest snapshot on ELTIF 2.0 provisions and implications for non-listed real estate investment.

Download INREV’s position paper on draft RTS under the revised ELTIF Regulation

On 12 January, INREV sent its position on AIFMD Review regarding ancillary services to the European Parliament’s ECON Committee. 

Emily Harmsworth, Counsel at Linklaters LLP in London and Claire Prospert, Partner in the firm’s Luxembourg team, presented on the Cross-border marketing package and ESMA’s Marketing Communications Guidelines.

Download the latest snapshot on AIFMD Review legislative proposal.

Download the latest snapshot on ELTIF review legislative proposal.

On 24 March, INREV responded to the review of ELTIF. We argued that the current rules should be neither diluted nor augmented without considering the potential impact on managing non-listed real estate funds.

On 24 March, INREV responded to the review of AIFMD rules in which we gave emphasis to delegation and loan originating non-listed real estate funds.

Claire Prospert from Linklaters’ Luxembourg office and Richard Cole from the firm’s London office present on navigating the practical challenges of cross-border distribution of real estate funds under EU Cross-Border Distribution rules and evolving NPPR and MiFID practices.  

Richard Cole from Linklaters’ London office and Claire Prospert from the firm’s Luxembourg office present on the cross-border distribution of collective investment undertakings directive and regulation (CBDF) which apply from 2 August, and also discuss post-Brexit distribution options.

On 28 January, INREV filed a response to the AIFMD Review Consultation arguing that real improvement could be achieved through Level 2 or Level 3 measures, without opening up Level 1 for revision.

Jeff Rupp, INREV Public Affairs Director, presented on the recent INREV responses to European Commission consultations on AIFMD and ELTIF. 

On 18 January, INREV filed a response to the review of the European Long-Term Investment Funds (ELTIF). We argued that, with some adjustments, ELTIF could serve as an attractive fund product forretail investors.

On 31 December 2020 the UK will leave the EU. This snapshot analyses Brexit’s potential impact on UK and on EU and other EEA managers wanting to market non-listed real estate funds after Brexit.

Jeff Rupp, INREV Public Affairs Director, presented on the recently launched European Commission consultation on AIFMD.

On 23 October, the European Commission launched a public consultation on the review of AIFMD. The Commission seeks feedback on issues including the AIFM passport, the scope of the AIFM licence, investor protection, non-EU alternative investment funds, financial stability, etc.
 

On 28 August, INREV filed a response to ESMA consultation on AIFMD Article 25 Guidelines on assessment of leverage in funds. We support the use of consistent methodology to compute leverage across member states to collect data to identify potential sources of risk to financial stability.

Federica Miano, Public Affairs Manager at INREV, presents an overview of the basic requirements of AIFMD for real estate investment funds.

On 26 June, INREV filed a response to the ESMA consultation on AIFMD Marketing. We recommended information related to cross-border distribution of AIFs that authorities in EU member states should be required to make available on their websites.

INREV's response to the European Commission’s survey on AIFMD being carried out by KPMG. The response reflects the Commission's proposed directive issued last week that includes, inter alia, a definition of pre-marketing that INREV has been encouraging for some time. It is also closely aligned with RICS views on the issue of external valuer liability.

On 30 September 2016 INREV filed comments in response to a Commission consultation on barriers to fund distribution. The response noted that while real estate makes a vitally important contribution to economic stimulation, growth and job creation in Europe, certain regulatory barriers  act as impediments and create inefficiencies. The Commission was urged to take steps to address these barriers without delay.