Activities of Syed KAMALL related to 2011/0417(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on European Venture Capital Funds PDF (312 KB) DOC (200 KB)
Amendments (20)
Amendment 36 #
Proposal for a regulation
Recital 1
Recital 1
(1) Venture capital provides finance to undertakings that are generally very small, in the initial stages of their corporate existence and display a strong potential for growth and expansion. In addition, venture capital funds provide these undertakings with valuable expertise and knowledge, business contacts, brand-equity and strategic advice. By providing finance and advice to these undertakings, venture capital funds stimulates economic growth, contribute to the creation of jobs, boost innovative undertakings, increase their investment in research and development and foster entrepreneurship, innovation and competitiveness in the Unionline with the objectives of EU 2020 Strategy and in the context of the long-term challenges of the Member States, such as those identified in the European Strategy and Policy Analysis System's report, Global Trends 2030.
Amendment 43 #
Proposal for a regulation
Recital 5
Recital 5
(5) In order to clarify the relationship between this Regulation and rules on collective investment undertakings and their managers, it is necessary to establish that this Regulation should only apply to managers of collective investment undertakings, other than UCITS in accordance with Article 1 of Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), who are established in the Union and are registered with the competent authority in their home Member State in accordance with Directive 2011/61/EC of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010.Furthermore, it should only apply to managers who manage portfolios of qualifying venture capital funds whose assets under management in total do not exceed a threshold of EUR 500 million. In order to make the calculation of this threshold operational, the power to adopt acts , irrespective of whether such qualifying accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of specifying the calculation of this threshold. When exercising this empowerment, the Commission should, in order to ensure consistency in rulesssets, together with non-qualifying assets, managed by a manager exceed EUR 500 million. In order to make the calculation of this threshold operational, the method onf collective investment undertakings, take into account measures adopted by the Commission in accordance with point (a) of Article 3 (6) ofalculating such thresholds should be identical to that applicable under Directive 2011/61/ECU.
Amendment 50 #
Proposal for a regulation
Recital 8
Recital 8
(8) In line with the aim of precisely circumscribing the collective investment undertakings which will be covered by this Regulation and in order to ensure their focus on providing capital to small undertakings in the initial stages of their corporate existence, the designation ‘European Venture Capital Fund’ should be restricted only to those funds that dedicateinvest at least 70 percent51 % of their aggregate capital contributions and uncalled committed capital to investments in such undertakings in the form of equity or quasi equity instruments.
Amendment 56 #
Proposal for a regulation
Recital 10
Recital 10
(10) In order to allow venture capital fund managers a certain degree of flexibility in the investment and liquidity management of their qualifying venture capital funds, secondary trading should be permitted up to a maximum threshold not exceeding 30 percent of aggregate capital contributions and uncalled capital investments. Short term holdings of cash and cash equivalent49 % of capital drawn down for investment purposes. Holdings of cash and cash equivalents and capital drawn down to cover costs and expenses should not be taken into account when calculating this limit.
Amendment 64 #
Proposal for a regulation
Recital 16
Recital 16
(16) In order to ensure the integrity of the designation ‘European Venture Capital Fund’ this Regulation should also contain quality criteria as regards the organisation of a venture capital fund manager. Therefore, this Regulation should lay down uniform, proportionate requirements for the need to maintain adequate technical and human resources as well as sufficient own funds for the proper management of qualifying venture capital funds.
Amendment 65 #
Proposal for a regulation
Recital 30
Recital 30
(30) In order to specify the requirements set out in this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of specifying the methods to be used for calculating and monitoring the threshold as referred to in this Regulation, and specifying the types of conflicts of interests venture capital funds managers need to avoid and the steps to be taken in that respect. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.
Amendment 67 #
Proposal for a regulation
Recital 31
Recital 31
Amendment 68 #
Proposal for a regulation
Recital 32
Recital 32
(32) At the latest four years after the date on which this Regulation becomes applicable a rev review of this Regulation should be carriewd of this Regulation should be carrut at the same time as or immediately after the reviedw outf Directive 2011/61/EU in order to take account of the development of the venture capital market. On the basis of the review, the Commission should submit a report to the European Parliament and the Council accompanied, if appropriate, by legislative changes.
Amendment 72 #
Proposal for a regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
1. This Regulation applies to managers of collective investment undertakings as defined in point (b) of Article 3 who are (a) that manage portfolios of qualifying venture capital funds; (b) the assets of which, under management in qualifying venture capital funds, do not exceed EUR 500 million, regardless of whether they fall within the scope of Directive 2011/61/EU with respect to their funds other than qualifying venture capital funds; (c) that are established in the Union; and (d) that are subject to registration with the competent authorities of their home Member State in accordance with point (a) of Article 3 (3) of Directive 2011/61/ECU or authorised in accordance with that Directive, provided that those managers manage portfolios of qualifying venture capital funds, whose assets under management in total do not exceed a threshold of EUR 500 million or, in the Member States where the Euro is not the official currency, the corresponding value in the national currency on the date of the entry into force of this Regulation.
Amendment 79 #
Proposal for a regulation
Article 3 – point a
Article 3 – point a
(a) ‘'qualifying venture capital fund’' means a collective investment undertaking that invests at least 70 percent51 % of its aggregate capital contributions and uncalled committed capitaldrawn down for investment purposes in assets that are qualifying investments;
Amendment 95 #
Proposal for a regulation
Article 3 – point d
Article 3 – point d
(d) 'qualifying portfolio undertaking' means: (i) an undertaking that, at the time of an investment by the qualifying venture capital fund, is not listed on a regulated market as defined in point (14) of Article 4 (1) of Directive 2004/39/EC which employs fewer than 250 persons, and either has an annual turnover not exceeding EUR 50 million, or an annual balance sheet total not exceeding EUR 43 million, and which is not itself a collective investment undertaking; or (ii) a qualifying venture capital funds;
Amendment 101 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
1. The venture capital fund manager shall ensure that, when acquiring assets other than qualifying investments, no more than 30 percent49 % of the fund's aggregate capital contributions and uncalled committed capitaldrawn for investment purposes is used for the acquisition of assets other than qualifying investments; short term holdings in cash and, cash equivalents shall not beand capital drawn to cover costs and expenses is not taken into account for calculating this limit.
Amendment 111 #
Proposal for a regulation
Article 6 – introductory part
Article 6 – introductory part
Venture capital fund managers shall market the units and shares of qualifying venture capital funds exclusively to investors which are consideredom they reasonably believe to be professional clients in accordance with Section I of Annex II of Directive 2004/39/EC or may, on request, be treated as professional clients in accordance with Section II of Annex II of Directive 2004/39/EC, or to other investors where:
Amendment 113 #
Proposal for a regulation
Article 6 – point a
Article 6 – point a
(a) those other investors commit to invest a minimum of EUR 100.50 000;
Amendment 130 #
Proposal for a regulation
Article 6 – paragraph 1 a (new)
Article 6 – paragraph 1 a (new)
Notwithstanding the provisions of paragraph 1, Member States may permit qualifying venture capital fund managers to market to other categories of investor within their jurisdiction.
Amendment 132 #
Proposal for a regulation
Article 7 – point d
Article 7 – point d
(d) apply a high level ofdue diligence in the selection and ongoing monitoring of investments in qualifying portfolio undertakings;
Amendment 138 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. The venture capital fund manager shall make available an annual report to the competent authority of the home Member State for each qualifying venture capital fund under management no later than 6 months following the end of the financial year. The report shall describe the composition of the portfolio of the qualifying venture capital fund and the activities of the past year. It shall contain the audited financial accounts for the qualifying venture capital fund. It shall confirm that money and assets are held in the name of the fund and that the venture capital fund manager has established and maintained adequate records and controls in respect of the use of any mandate or control over the money and assets of the qualifying venture capital fund and its investors. It shall be produced in accordance with existing reporting standards and the terms agreed between the venture capital fund manager and the investors. The venture capital fund manager shall provide the report to investors on request. Venture capital fund managers and investors may agree additional disclosures amongst themselves.
Amendment 146 #
Proposal for a regulation
Article 23 – paragraph 5
Article 23 – paragraph 5
5. A delegated act adopted pursuant to paragraph 3 of Article 2 or paragraph 5 of Article 8 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of twohree months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by twohree months at the initiative of the European Parliament or the Council.
Amendment 147 #
Proposal for a regulation
Article 24 – paragraph 1 – introductory part
Article 24 – paragraph 1 – introductory part
1. At the latest four years after the date of application of this Regulationsame time as or immediately after the review of Directive 2011/61/EU, the Commission shall review this Regulation. The review shall include a general survey of the functioning of the rules in this Regulation and the experience acquired in applying them, including:
Amendment 148 #
Proposal for a regulation
Article 24 – paragraph 1 – point b
Article 24 – paragraph 1 – point b
(b) the scope of this Regulation, including the threshold of EUR 500 millionpossibility of extending the marketing of EuVCFs to retail investors.