ELTIFs that allow for matching transfer requests between existing and potential investors must develop a transparent matching policy. This policy should detail the format, timing, and frequency of matching, along with submission requirements for purchase and exit requests. It must also clarify the differences between matching requests and redemption policies, especially regarding execution pricing.

Managers of ELTIFs can set execution prices based on net asset value (NAV) or other methods, ensuring fair treatment for all investors. If the price is based on NAV, the matching must align with valuation dates; otherwise, it should occur outside these dates. Additionally, the policy must specify any applicable exit and purchase fees, along with pro-rata rules to handle mismatches in transfer requests.

ELTIFs are required to provide investors with comprehensive information about matching transfers, including predetermined dealing dates, submission deadlines and matching frequency. They must also clarify the criteria for determining execution prices and inform investors about the differences between matching and redemption options. Keeping this information current is the responsibility of the ELTIF manager.

Managers must assess market conditions for each asset, considering the presence of potential buyers, their reliance on external financing and the risks associated with legislative or political changes that could affect market conditions.

ELTIF managers are required to ensure that the valuation of the fund’s assets is carried out at least once a year in accordance with specific rules and frequency stated in the ELTIF's internal rules or instruments of incorporation. The valuations of assets slated for divestment must commence before this deadline and be completed within six months. Previous valuations obtained specifically in compliance with other directives (such as the AIFMD or UCITS) may be used if finalised within this period.

The regulation mandates clear definitions for various costs associated with the establishment and operation of ELTIFs, including setup, management, and distribution costs. Total costs must be expressed as a percentage of the ELTIF’s net asset value over a one-year period.

This regulation is applicable with immediate effect as it is published in the Official Journal of the European Union, ensuring it is binding across all Member States.

Overall, these guidelines aim to enhance transparency and protect investors while facilitating the effective functioning of ELTIFs in the European market.

The final ELTIF RTS can be found here.