Activities of Syed KAMALL related to 2013/0214(COD)
Shadow reports (2)
SUPPLEMENTARY REPORT on the proposal for a regulation of the European Parliament and of the Council on European Long-term Investment Funds PDF (719 KB) DOC (192 KB)
REPORT on the proposal for a regulation of the European Parliament and of the Council on European Long-term Investment Funds PDF (403 KB) DOC (224 KB)
Amendments (19)
Amendment 62 #
Proposal for a regulation
Recital 2
Recital 2
(2) On the demand side, ELTIFs can provide a steady and safe income stream for pension administrators, insurance companies and other entities that face regular and recurrent liabilities. While providing less liquidity than investments in transferable securities, ELTIFs can provide a steady and safe income stream for individual investors that rely on the regular cash flow that an ELTIF can produce. ELTIFs can also offer good opportunities for capital appreciation over time for those investors not receiving a steady and safe income stream.
Amendment 67 #
Proposal for a regulation
Recital 4
Recital 4
(4) WhileGiven that individual retail investors may be interested in investing in an ELTIF, the illiquid nature of most investments in long-term projects precludes an ELTIF from offering regular redemptions to its investors. The commitment of the individual investor to an investment in such assets is by its nature made to the full term of the investmentand given that retail investors may not have the necessary resources or a sufficiently diversified portfolio that would allow them to lock-up their capital for a long period of time, other than when the investment is held within a personal pension arrangement, an ELTIF should be allowed to consider offering redemption rights to investors. At the same time, given the illiquid nature of most of the investments and the long-term character of the projects, a clear and predefined redemption rights regime should be in place. ELTIFs should, consequently, be structured so as not to offer regular redemptions before the end of, where applicable under the redemption policy regime, regular redemptions during the life of the ELTIF. A report, three years after the adoption of this Regulation, shall investigate whether this rule will have achieved the expected results in terms of ELTIF distribution or whether the introduction, in a limited number of cases, of the possibility, for some individual retail investors, to redeem their units or shares before the end of the ELTIF, may contribute to increase the distribution of ELTIF among the individual retail investors.
Amendment 88 #
Proposal for a regulation
Recital 16
Recital 16
(16) The definition of what constitutes a long-term investment is broad. Without necessarily requiring long-term holding periods for the ELTIF manager, eligible investment assets are generally illiquid, require commitments for a certain period of time, and have an economic profile of a long-term nature. Eligible investment assets are non-transferable securities and therefore do not have access to the liquidity of secondary markets. They often require fixed term commitments which restrict their marketability. The economic cycle of the investment sought by ELTIFs is essentially of a long-term nature due to the high capital commitments and the length of time required to produce returns. As a result such assets do not suit investments with redemption rights.
Amendment 110 #
Proposal for a regulation
Recital 30
Recital 30
(30) In order to allow ELTIF managers to raise further capital during the life of the fund, they should be permitted to borrow cash amounting to up to 340% of the capital of the fund. This should serve to provide additional return to the investors. In order to eliminate the risk of currency mismatches, the ELTIF should only borrow in the currency the manager expects to acquire the asset in.
Amendment 114 #
Proposal for a regulation
Recital 32
Recital 32
(32) Notwithstanding the fact that ELTIFs do not offer redemption rights before the end of life of the ELTIF, nothing should prevent an ELTIF from seeking admission of these shares or units to a regulated market as defined in Article 4(14) of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments,10 to a multilateral trading facility as defined in Article 4(15) of Directive 2004/39/EC, or to an organised trading facility as defined in point (…...) of Regulation (…...), thus providing investors with an opportunity to sell their units or shares before the end of life of the ELTIF. The rules or instruments of incorporation of an ELTIF should therefore not prevent units or shares from being admitted to or from being dealt ion regulated markets, nor should they prevent investors from freely transferring their shares or units to third parties who wish to purchase those shares or units. __________________ 10 OJ L 145, 30.4.2004, p.1.
Amendment 119 #
Proposal for a regulation
Recital 36
Recital 36
(36) As ELTIFs target both professional and retail investors across the Union, it is necessary that certain requirements be added to the marketing requirements laid down in Directive 2011/61/EU in order to ensure an appropriate degree of investor protection, particularly for individual or retail investors. Thus, facilities should be made available for making subscriptions, making payments to unit- or shareholders, repurchasing or redeeming units or shares and making available the information which the ELTIF and its managers are required to provide. Moreover, in order to ensure that individual or retail investors are not disadvantaged with respect to experienced professional investors certain safeguards have to be put in place when ELTIFs are marketed to individual or retail investors, such as redemption rights at least at mid-term of the ELTIF's life.
Amendment 134 #
Proposal for a regulation
Article 3 – paragraph 2 – subparagraph 1
Article 3 – paragraph 2 – subparagraph 1
An ELTIF shall onlmay be marketed in the Union wherewhole Union or any of the EU Member States provided that it has been authorised in accordance with this Regulation.
Amendment 150 #
Proposal for a regulation
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
1a. The competent authority shall provide the applicant ELTIF with an answer within 30 days.
Amendment 153 #
Proposal for a regulation
Article 8 – paragraph 1 – point b a (new)
Article 8 – paragraph 1 – point b a (new)
(ba) fine art and jewellery on sale through auction houses registered in the EU.
Amendment 210 #
Proposal for a regulation
Article 14 – paragraph 1 – point a
Article 14 – paragraph 1 – point a
(a) it represents no more than 340% of the capital of the ELTIF;
Amendment 221 #
Proposal for a regulation
Article 16 – paragraph 1 – subparagraph 1
Article 16 – paragraph 1 – subparagraph 1
Amendment 228 #
Proposal for a regulation
Article 16 – paragraph 1 – subparagraph 3
Article 16 – paragraph 1 – subparagraph 3
The ELTIF rules or instruments of incorporation and disclosures to investors shall lay down the procedures for redemption and disposal of assets and state clearly that redemption to investors shall commence on the day following the date defining the end of life of the ELTIFfor the purchase or redemption of fund shares or units.
Amendment 234 #
Proposal for a regulation
Article 16 – paragraph 3
Article 16 – paragraph 3
3. Investors may request the winding down of the ELTIF if their redemption requests made in accordance with the ELTIF's redemption policy have not been satisfied within one year after the end of life of the ELTIFdate when they have been made.
Amendment 244 #
Proposal for a regulation
Article 20 – paragraph 1 – point b
Article 20 – paragraph 1 – point b
(b) the capital appreciation realized after the disposal of an asset, but excluding the original capital commitments made.
Amendment 253 #
Proposal for a regulation
Article 21 – paragraph 4 – subparagraph 2 – point b
Article 21 – paragraph 4 – subparagraph 2 – point b
(b) inform investors about the end of the initial life of the ELTIF where applicable;
Amendment 256 #
Proposal for a regulation
Article 21 – paragraph 4 – subparagraph 2 – point d
Article 21 – paragraph 4 – subparagraph 2 – point d
(d) state thate right of investors shall have no right to redeem their investment until the end of the lifein accordance with Article 16(1) and with the rules or instruments of incorporation of the ELTIF;
Amendment 266 #
Proposal for a regulation
Article 23 – paragraph 1
Article 23 – paragraph 1
1. TIn the case of ELTIFs that operate a regular redemption policy, the manager of anthe ELTIF shall, in each Member State where it intends to market units or shares of that ELTIF, put in place facilities available for making subscriptions, making payments to unit- or shareholders, repurchasing or redeeming units or shares and making available the information which the ELTIF and its managers are required to provide.
Amendment 291 #
Proposal for a regulation
Article 30 – paragraph 1 – point a
Article 30 – paragraph 1 – point a
(a) the impact of the provision in Article 16(1) that excludeallows investors fromto redeeming their units or shares before the end ofat mid-term of the life of the ELTIF. The review, taking into account ELTIF's distribution to different investor categories, shall also assess whether exempting a limited number of individual retail investors from such a rule would havehas the effect of increasing demand for ELTIF amongst individual or retail investors;
Amendment 294 #
Proposal for a regulation
Article 30 – paragraph 1 – point b
Article 30 – paragraph 1 – point b
(b) the impact on asset diversification of the application of the minimum threshold of 70% of eligible investment assets laid down in Article 12(1), in particular to assess whether increased measures on liquidity would be necessary should a limited number of individual retail investors be exempted from the prohibition on redeeming their units before the end of life of the ELTIFand after the mid-term of the life of the ELTIF in exceptional cases;