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Brief
Summary:
The European Securities and Markets Authority (ESMA) has responded to the European Commission's request for amendments to the European Long-Term Investment Fund (ELTIF) Technical Standards (RTS). ESMA suggests limited changes to strike a balance between protecting retail investors and contributing to the capital market union objectives. Specifically, ESMA proposes adjustments to the redemption policy and liquidity management tools to ensure an appropriate balance between investor protection and financial stability. The next steps involve the European Commission considering the proposed RTS, with the possibility of adoption or rejection.
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