23 Amendments of Thomas MANN related to 2007/2238(INI)
Amendment 2 #
Draft opinion
Paragraph 1
Paragraph 1
1. Stresses that, from the macroeconomic point of view, hedge funds and private equity (HFs & PE) represent welcome additional investors at a time when economic structures are experiencing ever more substantial change at an ever- increasing pace, but that this type of alternative investment is unregulated; stresses, in addition, that lack of scrutiny and excessive profit-seeking are solely at the expense of employees and/or other third parties; stresses, however, the potential risks also inherent to both forms of investment;
Amendment 6 #
Motion for a resolution
Recital A
Recital A
A. whereas there is at present insufficient EU regulation of hedge funds and private equity is only justified if the market fails,
Amendment 11 #
Draft opinion
Paragraph 2
Paragraph 2
2. Calls on the Commission to present a proposal as todiscuss how the legal status of HFs & PE as employers can be determined;
Amendment 14 #
Motion for a resolution
Recital D
Recital D
D. whereas hedge funds and private equity are increasingly important alternative investment vehicles that have not only a significant and increasing share in global assets under management, but also a significant and increasingly important presence and activity in world financial marketsimprove the efficiency of financial markets by creating new investment opportunities,
Amendment 20 #
Draft opinion
Paragraph 6
Paragraph 6
6. Expects the fund industry to move further towards voluntary but binding measures on corporate governance which will also be made public; considers that funds which act as entrepreneurs cannot distance themselves from cultivating human resources, ensuring worker participationsuch a code of conduct should include cultivating human resources and the pursuit of environmental and social objectives;
Amendment 24 #
Draft opinion
Paragraph 7
Paragraph 7
7. Calls on the Commission to monitor and analyse the effects of the operations of HF & PE companies, and to propose a directive on minimum transparency rules on the way in which investments are financed, the objectiverisks are managed, methods of invassestsment projects, the disclosure of ownership structures and the registration of hedge funds, the qualifications of managers and possible conflicts of interest;
Amendment 29 #
Motion for a resolution
Recital H
Recital H
H. whereas such long-term investment requires well-functioning, stable financial markets in the EU and globally, contributing to the real economy,
Amendment 38 #
Motion for a resolution
Recital J
Recital J
J. whereas global financial stability also requires better supervisory cooperation, including globally, which logically requires, in due course, a comprehensive revision of current EU supervisory arrangementwith regular exchanges of information, transparency of institutional investors and, instead of unnecessary additional regulation, a code of conduct that would be voluntarily entered into but nevertheless contain binding provisions,
Amendment 44 #
Motion for a resolution
Recital K
Recital K
K. whereas enhanced appropriate levels of transparency towards the public, investors and supervisory authorities, including, in future, any new EU supervisory body, are crucial to ensure such well- functioning and stable financial markets as well as for promoting competition between market actors and products,
Amendment 56 #
Motion for a resolution
Recital L
Recital L
L. whereas excessive debt required by muchsome of the activities of hedge funds and private equity may threatens financial stability, and prejudices the realisation of the long-term investment, growth and jobs agenda and is, moreover, unfairly favoured in national tax regimes,
Amendment 58 #
Motion for a resolution
Recital M
Recital M
M. whereas the recent increase in private equity transactions in many cases has significantly increased the number of employees, whose jobs are ultimately controlled by equity funds, and Community employment law (in particular, Directive 2001/23/EC) was formulated when this was not so in the undertakings,
Amendment 73 #
Motion for a resolution
Recital O
Recital O
O. whereas there are many conflicts of interest either arising from the business model of private equity or hedge funds or from the relationships between those vehiclebetween private equity or hedge funds and other actors in financial markets can arise,
Amendment 86 #
Motion for a resolution
Recital Q
Recital Q
Q. whereas in order to minimise the risk of future financial crises and given the strong interactions across markets and between market participants and given the objective of a level playing field across borders and between regulated and unregulated market participants, the EU needs better, more coherent and harmonised regulation across the boardanagement instruments in the event of failure of the market,
Amendment 100 #
Motion for a resolution
Recital Q a (new)
Recital Q a (new)
Qa. Whereas hedge funds can lead to conflicts of interest in the assessment of complex financial instruments; whereas hedge funds as minority shareholders can influence business strategies and whereas difficulties in hedge funds can have a direct bearing on credit institutions; whereas private equity undertakings have the problem of leveraged buy-out, which can place a disproportionate burden on acquired undertakings,
Amendment 101 #
Motion for a resolution
Recital Q b (new)
Recital Q b (new)
Amendment 111 #
Motion for a resolution
Paragraph 3
Paragraph 3
Amendment 128 #
Motion for a resolution
Annex – recommendation 1 – point b
Annex – recommendation 1 – point b
Amendment 139 #
Motion for a resolution
Annex – recommendation 1 – point d
Annex – recommendation 1 – point d
(d) Valuation The Commission should propose precise, in cooperation with the international standards bodies, should discuss sector- specific general rules on the valuation of illiquid financial instruments in order better to protect investors and the stability of financial markets.
Amendment 147 #
Motion for a resolution
Annex – recommendation 1 – point g
Annex – recommendation 1 – point g
Amendment 160 #
Motion for a resolution
Annex – recommendation 2 – point a
Annex – recommendation 2 – point a
(a) Registration and authorisation of management companies and funds' managers The Commission should seek to establish an EU global framework for the registration and authorisation of entities that control the investment of hedge funds or private equity (i.e. management firms), which should function on a single entry point basis: once authorised, the entities concerned should have access to undertake business throughout the EU. In order to promote a well-functioning single European financial market, t. The Commission should ensure that management firms disclose the following: - the name and domicile of funds they control, - the identity and qualifications of managers, - corporate earnings and bonuses, - remuneration of directors, senior executives and other staff with investment responsibilitiesnature and scope of risk management, and - relationships with prime brokers. That information should be set out in a uniform format (also to facilitate the proposal for a database below).
Amendment 165 #
Motion for a resolution
Annex – recommendation 2 – point b
Annex – recommendation 2 – point b
(b) Notification (i.e. approval) of wholesale investment vehicles In order to encourage funds to be located onshore in the EU, the Commission should propose a separate directive along the lines of the EU-wide private placement regime, currently under discussion, to apply to the marketing and distribution in the EU of hedge funds Private placement The Commission should submit a legislative proposal for the establishment of a Europeand private equity funds. Such a regime should function on a single entry point basis: once authorised, it should be possible to offer those wholesale investment vehicles to professional, institutional investors throughout the EU. In order to promote a well-functioning single European financial market, the Commission should ensure the investment vehicle discloses the following: - general investment strategy and immediate information on any changes thereto, - leverage/debt exposure, - overall fees as well as breakdown of fees (including any stock options awarded to employees),), - source and amount of funds raised,, - past performance, - risk-management system and portfolio valuation methods, - information on the administrator of the fund, and - share of the fund contributed by the management company and its staff.. That information should be set out in a uniform format (also to facilitate the database proposal below)placement regime allowing for cross- border distribution of alternative investment vehicles to eligible groups of sophisticated investors.
Amendment 176 #
Motion for a resolution
Annex – recommendation 2 – point d
Annex – recommendation 2 – point d
(d) Investors The Commission and supervisory authorities should ensure that investors in those vehicles receive not only sufficient but also relevant and comparable information (e.g. the simplified prospectus/fact sheet for UCITS).
Amendment 194 #
Motion for a resolution
Annex – recommendation 3 – point c
Annex – recommendation 3 – point c