22 Amendments of Dimitrios PAPADIMOULIS related to 2016/0221(COD)
Amendment 75 #
Proposal for a regulation
Recital 2
Recital 2
(2) The Communication on the Investment Plan for Europe of 16 November 201422 provides a comprehensive strategy to tackle the lack of finance which is holding back Europe's potential to grow and to provide jobs for its citizens. IAlthough it aims at unlocking private investment by using public funding and by improving the legal framework for the investment environment, it needs to be updated and further aimed at small and medium-sized enterprises. It has provided limited and uneven results and therefore needs evaluation and further elaboration. _________________ 22 Communication from the Commission to the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee, the Committee of the Regions and the European Investment bank: An Investment Plan for Europe (COM(2014)903 final).
Amendment 79 #
Proposal for a regulation
Recital 3
Recital 3
(3) The CMU framework goes in the wrong direction and its establishment has proved counterproductive in many areas of social and economic development. The Communication on the Capital Markets Union of 30 September 201523 is an important element of the Investment Plan. It aims at reducing fragmentation in the financial markets and increasing supply of capital to businesses through the establishment of a genuine single capital market. The Communication specifies that Regulation (EU) No 345/2013 and Regulation (EU) No 346/2013 need to be amended to ensure that the frameworks are best able to support investment in SMEs. _________________ 23 Communication from the Commission to the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions: Action Plan on Building a Capital Markets Union (COM(2015)468 final).
Amendment 81 #
Proposal for a regulation
Recital 4
Recital 4
(4) The market of qualifying venture capital funds and qualifying social entrepreneurship funds should be opened to increase scale effects, to reduce transaction and operational costs, to improve cooperation and sound competition and to strengthen investor choice enhancing economic convergence between Member States and regions. Enlarging the base of prospective managers should contributes to opening up that market to retail investors. It should benefit undertakings seeking investment by giving them access to financing from a greater and more varied range of risk investment sources. The scope of Regulation (EU) No 345/2013 and Regulation (EU) No 346/2013 should therefore be extended by opening up the use of the ‘EuVECA’ and ‘EuSEF’ labels to managers of collective investment undertakings authorised under Article 6 of Directive 2011/61/EU.
Amendment 87 #
Proposal for a regulation
Recital 5 a (new)
Recital 5 a (new)
(5a) A threshold of EUR 100 000 minimum entry ticket for non- professional investors is maintained for investing in EuVECA funds. It is questionable whether venture capital funds would be suitable for retail investors even in the case where investor protection rules would be strengthened, in particular due to the long term and illiquid nature of venture capital funds. However, it might be worth considering in the future whether a special possibility for retail investors could be opened through the use of a feeder fund under Regulation (EU) No 345/2013 for those EuVECA funds that wish to opt for enlarging their investor base. During the next review of that Regulation, the Commission should also investigate how lowering the relatively high threshold might be beneficial, especially as it can be seen as a potential barrier to more investment in such funds.
Amendment 91 #
Proposal for a regulation
Recital 5 b (new)
Recital 5 b (new)
(5b) For EuSEF funds, the threshold of EUR 100 000 should in any case be lowered to EUR 50 000, increasing access to funding especially for smaller and socially engaged firms which are less bankable due to the fact that they re- invest their profits into their projects and as such do not meet the minimum required return for bank capital requirements. This would also allow the spectrum of investment possibilities for non-professional investors to be widened and would allow such investors to support firms with a positive social impact.
Amendment 93 #
Proposal for a regulation
Recital 6
Recital 6
(6) In order to ensure that competent authorities know about every new use of the ‘EuVECA’ and ‘EuSEF’ labels, managers of collective investment undertakings authorised under Article 6 of Directive 2011/61/EU should register each qualifying venture capital fund or qualifying social entrepreneurship fund they intend to manage and market. This should ensure that those managers may maintain their business models by being able to manage collective investment undertakings established in other Member States while further widening the range of products they offer. However, in order to avoid overconcentration of capital across Europe to few managers, there should be a threshold of maximum two Member States, where a manager can maintain investment undertakings.
Amendment 95 #
Proposal for a regulation
Recital 7
Recital 7
(7) The range of eligible undertakings in which qualifying venture capital funds can invest should be expanded to further increase supply of capital to businesses. Tdefined by a combination of cumulative criteria that would direct liquidity to small and medium enterprises. Alternatively, the definition of qualifying portfolio undertakings should therefore includegive the opportunity to companies with up to 499250 employees (small mid-caps) and small and medium enterprises listed on SME growth markets. The new investment options should also allow growth stage entities that have already access to other sources of financing, such as SME growth markets, to receive capital from qualifying venture capital funds which in turn should contribute to the development of the SME growth markets, as referred to in Commission's Recommendation (EC) 361/2003.
Amendment 99 #
Proposal for a regulation
Recital 7 a (new)
Recital 7 a (new)
(7a) In order to make the framework more appealing and to further increase the supply of capital to social businesses, the range of eligible undertakings in which qualifying social entrepreneurship funds can invest should be expanded by extending the definition of positive social impact, without watering down its importance and while ensuring that it is a priority. The current, detailed language on positive social impact under the definition of qualifying portfolio undertaking is in some cases difficult to quantify and thus both for the funds and the regulators to interpret, apply or supervise. Therefore, further elaboration is needed, without lowering the standards of positive social impact and without creating further difficulties.
Amendment 101 #
Proposal for a regulation
Recital 8
Recital 8
(8) QFurther examination is needed for qualifying venture capital funds shouldto be allowed to participate on the longer term in the funding ladder for unlisted SMEs, unlisted small-midcaps and SMEs listed on SME growth markets, and to further enhance their potential for making returns from high-growth companies. Therefore, follow-on investments subsequent to the first investment should be allowed.
Amendment 112 #
Proposal for a regulation
Recital 10
Recital 10
(10) It is necessary to clarify that the prohibition for the host Member State to impose requirements or administrative procedures in relation to the marketing of qualifying venture capital funds and qualifying social entrepreneurship funds in its territory, does not necessarily includes the prohibition to impose fees and other charges on the managers of those funds.
Amendment 119 #
Proposal for a regulation
Recital 11
Recital 11
(11) Regulation (EU) No 345/2013 and Regulation (EU) No 346/2013 now require that managers of qualifying venture capital funds and qualifying social entrepreneurship funds have sufficient own funds at all times. To ensure a consistent understanding across the Union of what constitutes sufficient own funds for those managers, the European Supervisory Authority (‘ESMA’) should be required to draw up draft regulatory technical standards which prescribe the methodologies to determine what constitutes sufficient own fund, based on cumulative criteria. The final defined amount should be no more than that of AIFMD, which prescribe the methodologies to determine what constitutes sufficient own funds, taking into account the differences within the EU and the particularities of the different Member States.
Amendment 123 #
Proposal for a regulation
Recital 12
Recital 12
(12) Since this Regulation opens up the use of the ‘'EuVECA’' and ‘'EuSEF’' labels to managers of collective investment undertakings authorised under Article 6 of Directive 2011/61/EU, the central database, maintained by ESMA in accordance with Regulation (EU) No 345/2013 and Regulation (EU) No 346/2013, should also include information concerning the qualifying venture capital funds and qualifying social entrepreneurship funds that are managed and marketed by those managers.
Amendment 125 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12a) In order to take into account the specificities of EuVECA and EuSEF funds and their capital fundraising process, the circulation of draft fund documentation that does not include subscription documents, that is where no subscription is possible at that point in time, should not be considered to be marketing. Marketing should be deemed only to start at the point at which final legal documents relating to a fund are no longer negotiable.
Amendment 126 #
Proposal for a regulation
Recital 12 b (new)
Recital 12 b (new)
(12b) The central database maintained by ESMA should also conduct a background check of the qualifying venture capital fund managers and qualifying social entrepreneurship fund managers, as the managers should have a clear legal record with no illegal activities in the past.
Amendment 128 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13a) This Regulation should be without prejudice to the application of state aid rules to qualifying venture capital funds. Such funds may serve as vehicles for state aid to promote risk capital investments in SMEs through, for example, more favourable treatment of private investors than of the State, provided the aid is compatible with state aid rules and in particular with Article 21 of Commission Regulation (EU) No 651/2014 of 17 June 2014;
Amendment 143 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2 a (new)
Article 1 – paragraph 1 – point 2 a (new)
Regulation (EU) No 345/2013
Article 10 – paragraph 2 a (new)
Article 10 – paragraph 2 a (new)
(2a) In Article 10, the following paragraph is added: "2a. Where the value of the qualifying venture capital funds managed by the manager of qualifying venture capital funds is below EUR 250 000 000, own fund requirements shall represent one fourth of the preceding year's fixed overheads of the same manager."
Amendment 151 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Regulation (EU) No 345/2013
Article 10 – paragraph 3 – subparagraph 1 – introductory part
Article 10 – paragraph 3 – subparagraph 1 – introductory part
ESMA shall develop draft regulatory technical standards specifying the methodologies to determine what constitutes sufficient own funds based on quantitative and qualitative criteria. Those methodologies shall:
Amendment 153 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Regulation (EU) No 345/2013
Article 10 – paragraph 3 – subparagraph 1 – point b
Article 10 – paragraph 3 – subparagraph 1 – point b
(b) take into account the sizand be proportionate the size, complexity structure and internal organisation of the managers referred to in paragraph 1 of Article 2 in order to ensure neutral conditions of competition between those managers and managers referred to in paragraph 2 of that Article;
Amendment 185 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5
Article 1 – paragraph 1 – point 5
Regulation (EU) No 345/2013
Article 14a – paragraph 5
Article 14a – paragraph 5
5. Registration of qualifying venture capital funds under paragraphs 1, 2 and 3 shall be valid in the entire territory of the Union and shall allow marketing of those funds under the designation ‘'EuVECA’' throughout the Union, after a clearly defined cooperation and exchange of information process with the competent authority of the Member State, which should have the final word on this decision.
Amendment 203 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9 – point b a (new)
Article 1 – paragraph 1 – point 9 – point b a (new)
Regulation (EU) No 345/2013
Article 21 – paragraph 1 – subparagraph 1 a (new)
Article 21 – paragraph 1 – subparagraph 1 a (new)
(ba) In paragraph 1, the following subparagraph is added: "The competent authorities of the home or the host Member State shall inform ESMA without delay if they believe the manager of a qualifying venture capital fund has committed any of the breaches in points (a) to (i) of Article 21(1)."
Amendment 216 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2 a (new)
Article 2 – paragraph 1 – point 2 a (new)
Regulation (EU) No 345/2013
Article 6 – paragraph 1 – point a
Article 6 – paragraph 1 – point a
Amendment 224 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2 b (new)
Article 2 – paragraph 1 – point 2 b (new)
Regulation (EU) No 346/2013
Article 11 – paragraph 2a (new)
Article 11 – paragraph 2a (new)
(2b) In Article 11, the following paragraph is added: "2a. Where the value of the qualifying social entrepreneurship funds managed by the manager of qualifying social entrepreneurship funds is below EUR 250 000 000, own fund requirements shall represent one fourth of the preceding year's fixed overheads of the same manager."