Activities of Olle SCHMIDT related to 2011/0418(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on European Social Entrepreneurship Funds PDF (366 KB) DOC (325 KB)
Amendments (18)
Amendment 39 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6a) While the EuSEF can play an important role in furthering social entrepreneurship, and even though safeguards are included to ascertain that funds are properly used, there is a risk that EuSEFs can be used for unintended purposes. Supervisory authorities should be vigilant in this regard and a review should be made to ascertain that any such potential loopholes are closed.
Amendment 40 #
Proposal for a regulation
Recital 7
Recital 7
(7) This Regulation should establish uniform rules on the nature of EuSEFs, notably on the portfolio undertakings into which the EuSEFs are to be permitted to invest, and the investment instruments to be used. In order to ensure the necessary clarity and certainty and in order to avoid any abuse of the EuSEF regime by non- qualifying investment funds, this Regulation should also lay down uniform criteria to identify social undertakings as eligible qualifying portfolio undertakings. Social undertakings have the achievement of positive social impact as their principle objective rather than maximising their profits. Therefore, this Regulation should require that a qualifying portfolio undertaking should have the achievement of a measurable and positive social impact as its focus; that it uses its profits to achieve its primary objective and that it be managed in an accountable and transparent way. For the, in general, exceptional cases, in which a qualifying portfolio undertaking wishes to distribute profits to shareholders and owners, the qualifying portfolio undertaking should have predefined procedures and rules on how profits are distributed to shareholders and owners. Those rules should specify that distribution of profits does not undermine the primary social objective.
Amendment 46 #
Proposal for a regulation
Recital 9
Recital 9
(9) Taking into account the specific funding needs of social undertakings, it is necessary to achieve clarity regarding the types of instruments a EuSEF should use for such funding. Therefore, this Regulation should lay down uniform rules on the eligible instruments to be used by a EuSEF when making investments, which include equity instruments, debt instruments, investments into other EuSEFs and short and medium term loans as well as grants.
Amendment 50 #
Proposal for a regulation
Recital 21
Recital 21
(21) In order to ensure effective supervision of the uniform requirements contained in this Regulation, the competent authority of the home Member State should supervise compliance of the EuSEF manager with the uniform requirements set out in this Regulation. To this effect, the EuSEF manager who wishes to market his funds under the designation ‘European Social Entrepreneurship Fund’ should inform the competent authority of his home Member State of this intention. The competent authority should register and authorise the fund manager if all necessary information has been provided and if there are suitable arrangements to comply with the requirements of this Regulation are in place. Thise registration and authorisation should be valid across the entire Union. (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout with the exception of the provisions relating to Directive 2011/61/EU.)
Amendment 55 #
Proposal for a regulation
Article 3 – paragraph 1 – point a
Article 3 – paragraph 1 – point a
(a) ‘European Social Entrepreneurship Fund’ (EuSEF) means a collective investment undertaking that invests at least 750 percent% of its aggregate capital contributions and uncalled committed capital in assets that are qualifying investments; The limit shall be calculated on the basis of amounts investible after deduction of all relevant costs by a deadline, laid down in the constituting documents of the EuSEF. Fees, charges and expenses which are directly or indirectly borne by investors and which are agreed between the manager of, and the investors in, the EuSEFs shall be considered to be relevant costs.
Amendment 61 #
Proposal for a regulation
Article 3 – paragraph 1 – point c – point ii
Article 3 – paragraph 1 – point c – point ii
(ii) securitised and un-securitised debt instruments, issued by a qualifying portfolio undertaking and shareholder loans;
Amendment 68 #
Proposal for a regulation
Article 3 – paragraph 1 – point d – point i – indent 2
Article 3 – paragraph 1 – point d – point i – indent 2
– the undertaking employs a method of production of goods or services that embodies itsaims at achieving a positive societal objectiveimpact;
Amendment 73 #
Proposal for a regulation
Article 3 – paragraph 1 – point d – point ii
Article 3 – paragraph 1 – point d – point ii
(ii) uses its profits to achieve its primary objectivetargeted societal impact instead of distributing profits and has in place predefined procedures and rules for any circumstances in which profits are distributed to shareholders and owners;
Amendment 79 #
Proposal for a regulation
Article 4 – paragraph 1 a (new)
Article 4 – paragraph 1 a (new)
EuSEF managers subject to authorisation in accordance with Article 6 of Directive 2011/61/EC or who opt into such authorisation under Article 3(4) thereof shall also be entitled to use the designation "European Social Entrepreneurship Fund" in relation to the marketing of EuSEFs across the Union, provided that they comply with Articles 3, 5, 6, 9, Article 12(2) and Article 13(c), (d) and (e) of this Regulation.
Amendment 80 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
1. EuSEF managers shall ensure that, when acquiring assets other than qualifying investments no more than 350 percent %of the EuSEF's aggregate capital contributions and uncalled committed capital is used for the acquisition of assets other than qualifying investments; short term holdings in cash and cash equivalents shall not be taken into account for calculating this limit. The limit shall be calculated on the basis of amounts investible after deduction of all relevant costs and within a time laid down in the constituting documents of the qualifying EuSEF. Fees, charges and expenses which are directly or indirectly borne by investors and which are agreed between the manager of, and the investors in, the EuSEFs should be considered to be relevant costs.
Amendment 85 #
Proposal for a regulation
Article 5 – paragraph 2
Article 5 – paragraph 2
2. EuSEF managers shall not borrow, issue debt obligations, provide guarantees, at the level of the EuSEF which are not covered by uncalled commitments, nor employ any method, at the level of the EuSEF, by which the exposure of the fund will be increased, whether through borrowing of cash or securities, the engagement into derivative positions or by any other means.
Amendment 92 #
Proposal for a regulation
Article 6 – paragraph 1 – point a
Article 6 – paragraph 1 – point a
(a) those other investors commit to invest a minimum of EUR 100.50 000;
Amendment 98 #
Proposal for a regulation
Article 6 a (new)
Article 6 a (new)
Article 6a Without prejudice to other Union law, Member States may allow EuSEF managers to market specially designated EuSEFs to retail investors on their territory. In such cases, Member States may, as provided for in Article 43 in Directive 2011/61/EU, impose stricter requirements on the EuSEF manager or the specially designated EuSEF.
Amendment 101 #
Proposal for a regulation
Article 7 – paragraph 1 – point d
Article 7 – paragraph 1 – point d
(d) apply a highappropriate and proportional level of diligence in the selection and ongoing monitoring of investments in qualifying portfolio undertakings;
Amendment 112 #
Proposal for a regulation
Article 13 – paragraph 1 – point c
Article 13 – paragraph 1 – point c
(c) the positive social impact being targeted by the investment policy of the EuSEF, including where relevant, projections of such outcomes as may be reasonable, and information on the impact measurement criteria/methodology to be applied to each respective investment and, where available, past performance in this area;
Amendment 117 #
Proposal for a regulation
Article 13 – paragraph 1 – point i
Article 13 – paragraph 1 – point i
(i) where relevant, a description of how the remuneration of the EuSEF manager is calculated;
Amendment 120 #
Proposal for a regulation
Article 13 a (new)
Article 13 a (new)
Article 13a For each EuSEF that it manages the EuSEF manager shall ensure that a third party is entrusted with the task of verifying ownership of the assets of the qualifying EuSEF, and that the third party maintains a record of the assets of the qualifying EuSEF.
Amendment 122 #
Proposal for a regulation
Article 15 – paragraph 1 – point b
Article 15 – paragraph 1 – point b
(b) to market an existing EuSEF in a Member State not mentioned in the list referred to in point (d) of Article 14 (1).