Article 28 — Specific requirements concerning the distribution of ELTIFs to retail investors
- When directly offering or placing units or shares of an ELTIF to a retail investor, the manager of the ELTIF shall obtain information regarding the following:
- the retail investor's knowledge and experience in the investment field relevant to the ELTIF;
- the retail investor's financial situation, including that investor's ability to bear losses;
- the retail investor's investment objectives, including that investor's time horizon.
- Where the life of an ELTIF that is offered or placed to retail investors exceeds 10 years, the manager of the ELTIF or the distributor shall issue a clear written alert that the ELTIF product may not be suitable for retail investors that are unable to sustain such a long-term and illiquid commitment.