Activities of Rodi KRATSA-TSAGAROPOULOU related to 2013/0214(COD)
Plenary speeches (1)
European long-term investment funds (A7-0211/2014 - Rodi Kratsa-Tsagaropoulou) (vote)
Reports (1)
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 (8)
Amendment 68 #
Proposal for a regulation
Recital 4
Recital 4
(4) While individual 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 investment. ELTIFs should, consequently, be structured so as not to offer regular redemptions before the end of life of the ELTIF. This does not, however, imply that investors cannot redeem their investments prior to the end of the ELTIF's lifecycle. Many of the successful long-term funds that the Commission's impact assessment found at national level have been structured as listed entities. That allows investors to trade their shares or units in the fund on a secondary market. When the shares of the fund are listed on an exchange, investors are able to buy and sell shares of the fund directly on the exchange like any other listed security. The secondary market can also be operating when the shares or units of the fund are not listed. In that case the investors can exchange directly their holding with another investor. Intermediaries like banks or distributors can play a facilitating role in this secondary market. They can collect the buy and sell orders and can match these orders between their clients. If long-term investing is really supposed to become attractive for smaller-scale investors or the retail community at large, secondary markets will be the principal venue in which you can buy into or leave the long term fund. 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 107 #
Proposal for a regulation
Recital 26
Recital 26
(26) Where the manager holds a stake in a portfolio undertaking, there is a risk that the manager puts its interests ahead of the interests of investors in the fund. To avoid such conflict of interests, the ELTIF should only invest in assets that are unrelated to the manager to ensure sound corporate governance.
Amendment 112 #
Proposal for a regulation
Recital 31 a (new)
Recital 31 a (new)
(31a) The European Investment Bank, given its expertise in EU infrastructure financing, as well as other similar national institutions should actively cooperate with the ELTIF managers and the investors, particularly retail investors who may lack the relevant experience. Furthermore, the EIB's Project Bonds Initiative and other similar activities, such as the Connecting Europe Facility, should be directly linked to the ELTIF, with the EIB assuming risk and providing guarantees, to reduce risks inherent to this type of investments and encourage investors to trust the ELTIF as a safe investment vehicle.
Amendment 121 #
Proposal for a regulation
Recital 39 a (new)
Recital 39 a (new)
(39a) The provision of tax incentives, at national level, relating to long-term investments via ELTIFs can play an important role in directing the current available resources to the financing of long-term projects in the Union, particularly focusing on projects which are beneficial to society and to the environment. For that reason, it could be assessed whether project bonds should also be considered to be eligible assets, with the aim of ensuring economies of scale and encouraging synergies between Union investment tools. Member States that are facing the consequences of fiscal adjustment are encouraged to provide state guarantees and favourable tax treatments such as tax deductions for investors who participate in ELTIFs. Member States should take all necessary legislative and institutional measures to ensure implementation of this Regulation.
Amendment 197 #
Proposal for a regulation
Article 12 – paragraph 2 – point d a (new)
Article 12 – paragraph 2 – point d a (new)
(da) 40% of its capital in assets or projects outside the EU
Amendment 230 #
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, establish under which exceptional circumstances the life cycle of the ELTIF may be reduced or extended and state clearly that redemption to investors shall commence on the day following the date defining the end of life of the ELTIF. The rules or instruments of incorporation may also include a provision specifying under which conditions redemption before the end of the life of the ELTIF is permitted only for retail investors, such as possible initial lock-up period, notification requirements, notification periods, the frequency of the exercise of the redemption rights. In such cases, ESMA and the competent authority of the ELTIF shall be notified regarding the specific provisions. If the risk profile of a certain project or enterprise is not appropriate for retail investors, the fund manager may decide to set up an ELTIF with limited or no participation for retail investors. In cases of limited participation the rules of incorporation shall specify this restriction as a percentage of the total capital.
Amendment 249 #
Proposal for a regulation
Article 21 – paragraph 3 – point d a (new)
Article 21 – paragraph 3 – point d a (new)
(d a) a cash flow statement;
Amendment 259 #
Proposal for a regulation
Article 21 – paragraph 4 – subparagraph 2 – point f a (new)
Article 21 – paragraph 4 – subparagraph 2 – point f a (new)
(fa) inform investors about the strategy regarding the use of derivatives taking into account specific characteristics and aspects of the project in question;