BETA


Events

2017/11/10
   Final act published in Official Journal
Details

PURPOSE: to strengthen an internal market for qualifying venture capital funds and qualifying social entrepreneurship funds by strengthening the use of designations ‘EuVECA’ and ‘EuSEF’.

LEGISLATIVE ACT: Regulation (EU) 2017/1991 of the European Parliament and of the Council of 25 October 2017 amending Regulation (EU) No 345/2013 on European venture capital funds and Regulation (EU) No 346/2013 on European social entrepreneurship funds.

CONTENT: this Regulation amends the Regulation on European Venture Capital Funds ( EuVECA ) and the European Social Entrepreneurship Fund ( EuSEF ) which introduced two new types of collective investment funds aimed at making investment in unlisted SMEs easier and more attractive for investors.

European Venture Capital Funds (EuVECA) and European Social Entrepreneurship Funds (EuSEF) aim to mobilise more investment capital in innovative SMEs and social enterprises in the EU.

The amending regulation is part of the action plan for the establishment of a Capital Markets Union . It aims to open the market for eligible venture capital funds and eligible social entrepreneurship funds to increase scale effects, reduce transaction and operating costs, increase competition and strengthen investor choice.

In practical terms, the amending regulation:

extends the scope of Regulations (EU) No 345/2013 and (EU) No 346/2013 by opening up the use of the designations ‘EuVECA’ and ‘EuSEF’ to managers of collective investment undertakings authorised under Directive 2011/61/EU , i.e. those with assets under management of more than EUR 500 million; increases the ability of EuVECA funds to invest in small, mid-cap companies and SMEs listed on SME growth markets; clarifies that EuSEF funds shall have the achievement of measurable, positive social impacts as its primary objective in accordance with its articles of association, statutes or any other rules or instruments of incorporation establishing the business; determines the minimum capital required to be a manager: the starting capital must be EUR 50 000. Own funds shall at all times amount to at least one eighth of the fixed overheads incurred by the manager in the preceding year. Own funds shall be invested in liquid assets or assets readily convertible to cash in the short term and shall not include speculative positions; simplifies registration procedures : registration of a manager in accordance with Regulations (EU) No 345/2013 and (EU) No 346/2013 shall also serve the purpose of the registration referred to in Directive 2011/61/EU in relation to the management of the qualifying venture capital funds or qualifying social entrepreneurship funds. Registration decisions and refusals to register shall be subject to administrative or judicial review in accordance with national law; reduces costs by expressly prohibiting the imposition of fees and other charges on the managers for the marketing of such funds if no supervisory task has to be performed; provides that the ESMA shall maintain a central database that is publicly accessible on the internet and that lists all managers of qualifying social entrepreneurship funds using the designation “EuSEF” and the qualifying social entrepreneurship funds for which they use that designation, as well as the countries in which those funds are marketed.

The Commission shall examine whether to introduce a management passport for the managers of eligible venture capital funds and eligible social entrepreneurship funds. Following this review, the Commission will have to submit a report to the European Parliament and the Council, accompanied, where appropriate, by a legislative proposal.

ENTRY INTO FORCE: 30.11.2017.

APPLICATION: from 1.3.2018.

2017/10/25
   CSL - Draft final act
Documents
2017/10/25
   CSL - Final act signed
2017/10/25
   EP - End of procedure in Parliament
2017/10/09
   EP/CSL - Act adopted by Council after Parliament's 1st reading
2017/09/14
   EP - Results of vote in Parliament
2017/09/14
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament adopted by 523 votes to 46 with 67 abstentions a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 345/2013 on European venture capital funds and Regulation (EU) No 346/2013 on European social entrepreneurship funds. Parliament’s position adopted in first reading following the ordinary legislative procedure amended the Commission proposal as follows:

Purpose of funds: venture capital funds (‘EuVECA’) and social entrepreneurship funds (‘EuSEF’) aim to contribute to mobilisation of investment capital in innovative SMEs and social enterprises in the EU.

With respect to EuSEF, these must have the achievement of measurable, positive social impacts as their primary objective, where the undertaking: (i) provides services or goods which generate a social return; (ii) employs a method of production of goods or services that embodies its social objective; or (iii) provides financial support exclusively to social undertakings as defined in the first two indents.

Own funds: managers of qualifying venture capital funds and qualifying social entrepreneurship funds, which are not authorised in accordance with Directive 2011/61/EU , must have sufficient own funds at all times. However, it is specified that the level of own funds should be based on cumulative criteria and should be significantly lower and less complex than the amounts laid down in Directive 2011/61/EU to take into account the specificities, nature and small size of those funds.

The amended text states that both internally managed qualifying venture capital funds and external managers of qualifying venture capital funds shall have an initial capital of EUR 50 000.

Own funds shall at all times amount to at least one eighth of the fixed overheads incurred by the manager in the preceding year. Where the value of the qualifying venture capital funds managed by the manager exceeds EUR 250 million, the manager shall provide an additional amount of own funds.

Own funds shall be invested in liquid assets or assets readily convertible to cash in the short term and shall not include speculative positions.

Uniform rules of registration and for managers’ conduct : the application for registration shall be made to the competent authority of the qualifying venture capital fund and shall include a list of Member States in which the managers have established qualifying venture capital funds.

With regard to EuSEF, a description of how environmental and climate-related risks are taken into account in the investment approach of the qualifying social entrepreneurship funds should be supplied.

A manager of a qualifying social entrepreneurship fund shall notify the competent authority of the home Member State of any material changes to the conditions for its initial registration before such changes are implemented. The changes may be implemented if the relevant competent authority does not oppose the changes within the relevant assessment period.

Any refusal to register a manager shall be substantiated, shall be notified to the managers and shall be subject to a right of appeal before a national judicial, administrative or other authority.

The final information on the basis of which the registration was granted must be made available to the European Securities and Markets Authority (ESMA) in a timely manner after the registration.

ESMA shall conduct peer in order to strengthen the consistency of the registration processes carried out by competent authorities in accordance with the Regulation.

The competent authority of the home Member State shall be responsible for supervising the organisation of the manager, so that that manager is in a position to comply with the obligations and rules that relate to the constitution and functioning of all the qualifying social entrepreneurship funds that it manages.

Where a manager does not observe the rules set out in the Directive, the competent authority of the Member State of origin may prohibit the manager of the qualifying social entrepreneurship fund from using the designation ‘EuSEF’ or EuVECA’ and remove that manager, or the fund concerned, from the register.

Management passport : the Commission should analyse the appropriateness of introducing a management passport for managers of qualifying venture capital funds and qualifying social entrepreneurship funds and the suitability of the definition of marketing for venture capital. Following that analysis, the Commission should submit a report to the European Parliament and to the Council, accompanied, if appropriate, by a legislative proposal.

Documents
2017/09/13
   EP - Debate in Parliament
2017/09/11
   EC - Commission response to text adopted in plenary
Documents
2017/07/11
   EP - Approval in committee of the text agreed at 1st reading interinstitutional negotiations
2017/06/29
   CSL - Coreper letter confirming interinstitutional agreement
2017/03/30
   EP - Committee report tabled for plenary, 1st reading/single reading
Details

The Committee on Economic and Monetary Affairs adopted the report by Sirpa PIETIKÄINEN (EPP, FI) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 345/2013 on European venture capital funds (EuVECA) and Regulation (EU) No 346/2013 on European social entrepreneurship funds (EuSEF).

The committee recommended that the European Parliament’s position, adopted at first reading following the ordinary legislative procedure, should amend the Commission proposal as follows:

Investment thresholds : a threshold of EUR 100 000 minimum entry ticket for non-professional investors is maintained for investing in EuVECA funds. The amended text stated that due to their long-term and illiquid nature, venture capital funds are not directly suitable for retail investors other than those described in this Regulation, even in the case where investor protection rules would be strengthened.

On the other hand, for EuSEF funds, the threshold of EUR 100 000 should, in any case, be lowered to EUR 50 000 . This would increase access to funding, in particular for smaller and socially engaged firms which are less bankable. It 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.

Own funds : the amended text provides that the venture capital funds and the social entrepreneurship funds, whether they are managed internally or externally, shall be provided with an initial capital of EUR 30 000 .

Own funds shall always amount to at least one eighth of the fixed overheads incurred by a manager in the preceding year.

It is necessary to invest own funds in liquid assets or assets that can be readily converted into cash in the short term. Own funds shall not include speculative positions.

At all times, managers of qualifying venture capital funds shall have sufficient own funds to maintain the continuity of the operations.

Investor information : managers of funds shall inform their investors of the non-qualifying investments which it intends to make, including the criteria and guidelines which govern the selection of such investments.

Managers of qualifying social entrepreneurship funds shall provide a description of how environmental and climate factors are considered in the investment approach of the qualifying social entrepreneurship fund and in particular, information about its exposure to assets whose value may be negatively impacted by legislation necessary to meet the Union's climate targets.

Supervision : Members introduced more stringent provisions on surveillance at EU level in order to avoid excessive risk-taking and instability in financial markets and to facilitate cross-border operations.

The text provides that the fund managers who intend to use the ‘EuVECA’ and ‘EuSEF’ labels for the marketing of their funds shall inform the relevant competent authority of their home Member State and the European Securities and Markets Authority (ESMA).

ESMA shall develop draft regulatory technical standards to specify the information to be provided to the competent authorities and itself in the application for registration of fund managers.

ESMA shall perform a coordination and oversight role in order to ensure that a consistent approach is taken by competent authorities in relation to the registration process. ESMA may issue recommendations to competent authorities to change their registration processes.

ESMA shall maintain a central database accessible by competent authorities of the home and host Member States for the purposes of the facilitation of the notification process and the required exchange of information.

It shall perform an oversight role in order to ensure that a consistent approach is taken by competent authorities in relation to the use of the supervisory and investigatory powers.

Management passport : the Commission shall analyse the appropriateness of introducing a management passport for managers of the qualifying venture capital funds and qualifying social entrepreneurship funds and the suitability of the definition of marketing for venture capital. Following the review, the Commission shall submit a report to the European Parliament and to the Council, accompanied, if appropriate, by a legislative proposal.

Documents
2017/03/22
   EP - Vote in committee, 1st reading/single reading
2017/03/22
   EP - Committee decision to open interinstitutional negotiations with report adopted in committee
2017/01/31
   EP - Amendments tabled in committee
Documents
2016/12/13
   EP - Committee draft report
Documents
2016/11/10
   IT_CHAMBER - Contribution
Documents
2016/10/13
   PT_PARLIAMENT - Contribution
Documents
2016/09/12
   ECB - European Central Bank: opinion, guideline, report
Details

OPINION of the European Central Bank (ECB) on a proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 345/2013 on European venture capital funds (EuVECA) and Regulation (EU) No 346/2013 on European social entrepreneurship funds (EuSEF).

The ECB supports the aims of the proposed regulation , which is a key part of the Capital Markets Union (CMU) Action Plan and a complement to other pillars of the Investment Plan for Europe .

It made the following specific observations:

Registration of EuVECA and EuSEF funds and their managers : the ECB supported the use of internationally agreed standards, such as the International Securities Identification Number (ISIN) and the global Legal Entity Identifier (LEI), as unique identifiers to meet reporting requirements on the securities markets.

In the case of EuVECA and EuSEF funds, the ECB considered that the information to be provided by managers when registering such funds should, as a mandatory requirement, include the global LEI for identifying the funds and their authorised managers. The ISIN should also be included in order to identify the units of, or shares in, the funds to be marketed.

Furthermore, the ECB’s proposed mandatory requirement to report the global LEI and the ISIN should apply to all financial markets and not just specific market segments.

The ECB also advised that, where appropriate and to the extent possible, other legislative changes underpinning the CMU should also establish the mandatory reporting of unique identifiers.

ESMA central databases of managers of EuVECA and EuSEF funds : the ECB proposed that these databases to be established by ESMA should include the LEI of each fund and its manager and the ISIN for the units or shares of the fund.

2016/09/12
   EP - Committee referral announced in Parliament, 1st reading/single reading
2016/07/14
   EC - Document attached to the procedure
2016/07/14
   EC - Document attached to the procedure
2016/07/14
   EC - Legislative proposal published
Details

PURPOSE: to strengthen the internal market for venture capital and social entrepreneurship funds by developing the use of EuVECA and EuSEF labels.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides following the ordinary legislative procedure on an equal footing with Council.

BACKGROUND: the proposal is part of the work undertaken to stimulate investments in growing and innovative firms. The Investment Plan for Europe presents a global strategy to increase competitiveness and stimulate investments for the purpose of job creation. It aims to further mobilise additional private investment using public funds through the European Fund for Strategic Investment ("EFSI").

A key strand of the Investment Plan is the Capital Markets Union ("CMU") action plan, which contains a range of measures to remove capital market barriers and facilitate the financing of SMEs.

Regulation (EU) No 345/2013 of the European Parliament and of the Council and Regulation (EU) 346/2013 of the European Parliament and of the Council lay down uniform requirements and conditions for managers of collective investment undertakings that wish to use in the Union the ‘ EuVECA ’ or ‘ EuSEF’ designations for the marketing of qualifying venture capital funds and qualifying social entrepreneurship funds. While EuVECA funds support young and innovative companies, EuSEF funds focus on enterprises whose aim is to achieve positive social impact.

The Commission is seeking to ensure that the EuVECA and EuSEF frameworks work as well as possible in supporting venture capital and social investment. However, the review of the two Regulations under the REFIT initiative (Regulatory Fitness and Performance programme) identified a number of factors holding back the development of these funds , in particular:

limitations on large managers whose portfolios exceed EUR 500 million, who may not use the "EuVECA" and "EuSEF" labels, a EUR 100,000 minimum entry ticket for non-professional investors and specific limitations on eligible investments (i.e. the definition of qualifying portfolio undertakings); differing requirements in different jurisdictions, in particular set-up fees, additional costs charged by host Member States and the required levels of sufficient own funds.

IMPACT ASSESSMENT: the options retained by the impact assessment are as follows :

allow managers authorized under Directive 2011/61/EU of the European Parliament and of the Council on Alternative Investment Fund Managers ("AIFMD") to use the "EuVECA" and "EuSEF" labels; expand the definition of qualifying portfolio undertakings in Regulation (EU) 345/2013; maintain the EUR 100,000 minimum investment; include explicit provisions in the two Regulations (to avoid burdensome administrative processes and additional measures (including fees imposed by host Member States) and non-proportionate requirements imposed by home Member States.

CONTENT: the proposal aims to amend Regulation (EU) No 345/2013 on European venture capital funds and Regulation (EU) 346/2013 on European social entrepreneurship funds . The amendments aim to:

allow managers authorised under Directive 2011/61/EU that manage portfolios above EUR 500 to use the ‘EuVECA’ and ‘EuSEF’ designations respectively in relation to the marketing of those funds in the Union; amend the definition of qualifying portfolio undertaking in Regulation (EU) No 345/2013 and include unlisted undertakings which employ up to 499 persons and small and medium-sized enterprises listed on a SME growth market; entrust ESMA with the development of draft regulatory technical standards specifying the methodologies for the determination of sufficient own funds; reduce costs by explicitly providing that fees and other charges may not be imposed by competent authorities of host Member States in relation to cross-border marketing of EuVECA and EuSEF funds, by simplifying registration procedures and determining minimum capital requirements to be a manager.

2016/07/12
   EP - PIETIKÄINEN Sirpa (PPE) appointed as rapporteur in ECON

Documents

Votes

A8-0120/2017 - Sirpa Pietikäinen - Am 2 14/09/2017 12:16:49.000

2017/09/14 Outcome: +: 523, 0: 67, -: 46
DE FR PL ES RO IT GB SE AT CZ BE PT BG NL FI HR DK SK HU LT LV SI LU MT IE EE CY EL
Total
80
66
48
47
27
57
56
19
17
16
18
18
13
23
12
11
13
10
12
9
8
8
6
6
7
4
5
18
icon: PPE PPE
176

Belgium PPE

3

Finland PPE

2

Denmark PPE

For (1)

1

Luxembourg PPE

3

Ireland PPE

2

Estonia PPE

For (1)

1

Cyprus PPE

1
icon: S&D S&D
164

Czechia S&D

3

Bulgaria S&D

2

Netherlands S&D

3

Croatia S&D

2
3

Latvia S&D

1

Slovenia S&D

For (1)

1

Luxembourg S&D

For (1)

1

Malta S&D

3

Ireland S&D

For (1)

1

Cyprus S&D

2
icon: ALDE ALDE
62

Romania ALDE

3

Austria ALDE

For (1)

1

Portugal ALDE

1

Croatia ALDE

2

Latvia ALDE

1

Slovenia ALDE

For (1)

1

Luxembourg ALDE

For (1)

1

Ireland ALDE

For (1)

1

Estonia ALDE

2
icon: ECR ECR
58

Romania ECR

For (1)

1

Italy ECR

1

Czechia ECR

For (1)

1

Bulgaria ECR

1

Netherlands ECR

For (1)

1
2

Croatia ECR

For (1)

1

Lithuania ECR

1

Latvia ECR

For (1)

1

Cyprus ECR

1

Greece ECR

Against (1)

1
icon: Verts/ALE Verts/ALE
50

Italy Verts/ALE

For (1)

1

United Kingdom Verts/ALE

5

Austria Verts/ALE

3

Belgium Verts/ALE

2

Netherlands Verts/ALE

2

Finland Verts/ALE

For (1)

1

Croatia Verts/ALE

For (1)

1

Denmark Verts/ALE

For (1)

1

Hungary Verts/ALE

2

Lithuania Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Slovenia Verts/ALE

For (1)

1

Luxembourg Verts/ALE

For (1)

1

Estonia Verts/ALE

For (1)

1
icon: NI NI
15

Germany NI

2

France NI

Abstain (1)

2

Poland NI

Against (1)

2

United Kingdom NI

For (1)

Against (2)

3

Hungary NI

2
icon: GUE/NGL GUE/NGL
42

Germany GUE/NGL

4

Italy GUE/NGL

Abstain (1)

3

United Kingdom GUE/NGL

Abstain (1)

1

Sweden GUE/NGL

For (1)

1

Czechia GUE/NGL

2

Portugal GUE/NGL

Against (1)

Abstain (1)

2

Netherlands GUE/NGL

3

Finland GUE/NGL

For (1)

1

Denmark GUE/NGL

Abstain (1)

1

Ireland GUE/NGL

3

Cyprus GUE/NGL

Against (1)

1
icon: ENF ENF
35

Poland ENF

2

Belgium ENF

Against (1)

1

Netherlands ENF

4
icon: EFDD EFDD
32

France EFDD

1

Poland EFDD

1

Sweden EFDD

2
AmendmentsDossier
199 2016/0221(COD)
2017/01/31 ECON 199 amendments...
source: 597.685

History

(these mark the time of scraping, not the official date of the change)

committees/0
type
Responsible Committee
body
EP
associated
False
committee_full
Economic and Monetary Affairs
committee
ECON
rapporteur
name: PIETIKÄINEN Sirpa date: 2016-07-12T00:00:00 group: European People's Party (Christian Democrats) abbr: PPE
shadows
committees/0
type
Responsible Committee
body
EP
associated
False
committee_full
Economic and Monetary Affairs
committee
ECON
date
2016-07-12T00:00:00
rapporteur
name: PIETIKÄINEN Sirpa group: European People's Party (Christian Democrats) abbr: PPE
shadows
docs/6/body
EC
events/4/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2017-0120&language=EN
New
http://www.europarl.europa.eu/doceo/document/A-8-2017-0120_EN.html
events/8/docs/0/url
Old
http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2017-0356
New
http://www.europarl.europa.eu/doceo/document/TA-8-2017-0356_EN.html
activities
  • date: 2016-07-14T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2016/0461/COM_COM(2016)0461_EN.pdf title: COM(2016)0461 type: Legislative proposal published celexid: CELEX:52016PC0461:EN body: EC commission: DG: url: http://ec.europa.eu/info/departments/financial-stability-financial-services-and-capital-markets-union_en title: Financial Stability, Financial Services and Capital Markets Union Commissioner: DOMBROVSKIS Valdis type: Legislative proposal published
  • date: 2016-09-12T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP shadows: group: S&D name: COZZOLINO Andrea group: ECR name: KAMALL Syed group: ALDE name: VAN NIEUWENHUIZEN Cora group: GUE/NGL name: PAPADIMOULIS Dimitrios group: Verts/ALE name: LAMBERTS Philippe group: EFD name: VON STORCH Beatrix responsible: True committee: ECON date: 2016-07-12T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: PIETIKÄINEN Sirpa body: EP responsible: False committee_full: Internal Market and Consumer Protection committee: IMCO body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE body: EP responsible: False committee_full: Legal Affairs committee: JURI
  • date: 2017-03-22T00:00:00 body: unknown type: Committee decision to open interinstitutional negotiations with report adopted in committee
  • date: 2017-03-22T00:00:00 body: EP type: Vote in committee, 1st reading/single reading committees: body: EP shadows: group: S&D name: COZZOLINO Andrea group: ECR name: KAMALL Syed group: ALDE name: VAN NIEUWENHUIZEN Cora group: GUE/NGL name: PAPADIMOULIS Dimitrios group: Verts/ALE name: LAMBERTS Philippe group: EFD name: VON STORCH Beatrix responsible: True committee: ECON date: 2016-07-12T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: PIETIKÄINEN Sirpa body: EP responsible: False committee_full: Internal Market and Consumer Protection committee: IMCO body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE body: EP responsible: False committee_full: Legal Affairs committee: JURI
  • body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2017-0120&language=EN type: Committee report tabled for plenary, 1st reading/single reading title: A8-0120/2017 type: Committee report tabled for plenary, 1st reading/single reading committees: body: EP shadows: group: S&D name: COZZOLINO Andrea group: ECR name: KAMALL Syed group: ALDE name: VAN NIEUWENHUIZEN Cora group: GUE/NGL name: PAPADIMOULIS Dimitrios group: Verts/ALE name: LAMBERTS Philippe group: EFD name: VON STORCH Beatrix responsible: True committee: ECON date: 2016-07-12T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: PIETIKÄINEN Sirpa body: EP responsible: False committee_full: Internal Market and Consumer Protection committee: IMCO body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE body: EP responsible: False committee_full: Legal Affairs committee: JURI date: 2017-03-30T00:00:00
  • date: 2017-07-11T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/commissions/econ/inag/2017/06-28/ECON_AG(2017)607904_EN.pdf type: Approval in committee of the text agreed at 1st reading interinstitutional negotiations title: PE607.904 GEDA/A/(2017)006572 body: unknown type: Approval in committee of the text agreed at 1st reading interinstitutional negotiations
  • date: 2017-09-13T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20170913&type=CRE type: Debate in Parliament title: Debate in Parliament body: EP type: Debate in Parliament
  • date: 2017-09-14T00:00:00 docs: url: http://www.europarl.europa.eu/oeil/popups/sda.do?id=29339&l=en type: Results of vote in Parliament title: Results of vote in Parliament url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2017-0356 type: Decision by Parliament, 1st reading/single reading title: T8-0356/2017 body: EP type: Results of vote in Parliament
  • date: 2017-10-09T00:00:00 body: EP/CSL type: Act adopted by Council after Parliament's 1st reading
  • date: 2017-10-25T00:00:00 body: CSL type: Final act signed
  • date: 2017-10-25T00:00:00 body: EP type: End of procedure in Parliament
  • date: 2017-11-10T00:00:00 docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32017R1991 title: Regulation 2017/1991 url: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2017:293:TOC title: OJ L 293 10.11.2017, p. 0001 type: Final act published in Official Journal
commission
  • body: EC dg: Financial Stability, Financial Services and Capital Markets Union commissioner: DOMBROVSKIS Valdis
committees/0
type
Responsible Committee
body
EP
associated
False
committee_full
Economic and Monetary Affairs
committee
ECON
date
2016-07-12T00:00:00
rapporteur
name: PIETIKÄINEN Sirpa group: European People's Party (Christian Democrats) abbr: PPE
shadows
committees/0
body
EP
shadows
responsible
True
committee
ECON
date
2016-07-12T00:00:00
committee_full
Economic and Monetary Affairs
rapporteur
group: EPP name: PIETIKÄINEN Sirpa
committees/1
type
Committee Opinion
body
EP
associated
False
committee_full
Industry, Research and Energy
committee
ITRE
opinion
False
committees/1
body
EP
responsible
False
committee_full
Internal Market and Consumer Protection
committee
IMCO
committees/2
type
Committee Opinion
body
EP
associated
False
committee_full
Internal Market and Consumer Protection
committee
IMCO
opinion
False
committees/2
body
EP
responsible
False
committee_full
Industry, Research and Energy
committee
ITRE
committees/3
type
Committee Opinion
body
EP
associated
False
committee_full
Legal Affairs
committee
JURI
opinion
False
committees/3
body
EP
responsible
False
committee_full
Legal Affairs
committee
JURI
docs
  • date: 2016-07-14T00:00:00 docs: url: https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SWD:2016:0228:FIN:EN:PDF title: EUR-Lex title: SWD(2016)0228 type: Document attached to the procedure body: EC
  • date: 2016-07-14T00:00:00 docs: url: https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SWD:2016:0229:FIN:EN:PDF title: EUR-Lex title: SWD(2016)0229 type: Document attached to the procedure body: EC
  • date: 2016-09-12T00:00:00 docs: url: https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52016AB0044:EN:NOT title: CON/2016/0044 url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C:2016:394:TOC title: OJ C 394 26.10.2016, p. 0002 summary: OPINION of the European Central Bank (ECB) on a proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) No 345/2013 on European venture capital funds (EuVECA) and Regulation (EU) No 346/2013 on European social entrepreneurship funds (EuSEF). The ECB supports the aims of the proposed regulation , which is a key part of the Capital Markets Union (CMU) Action Plan and a complement to other pillars of the Investment Plan for Europe . It made the following specific observations: Registration of EuVECA and EuSEF funds and their managers : the ECB supported the use of internationally agreed standards, such as the International Securities Identification Number (ISIN) and the global Legal Entity Identifier (LEI), as unique identifiers to meet reporting requirements on the securities markets. In the case of EuVECA and EuSEF funds, the ECB considered that the information to be provided by managers when registering such funds should, as a mandatory requirement, include the global LEI for identifying the funds and their authorised managers. The ISIN should also be included in order to identify the units of, or shares in, the funds to be marketed. Furthermore, the ECB’s proposed mandatory requirement to report the global LEI and the ISIN should apply to all financial markets and not just specific market segments. The ECB also advised that, where appropriate and to the extent possible, other legislative changes underpinning the CMU should also establish the mandatory reporting of unique identifiers. ESMA central databases of managers of EuVECA and EuSEF funds : the ECB proposed that these databases to be established by ESMA should include the LEI of each fund and its manager and the ISIN for the units or shares of the fund. type: European Central Bank: opinion, guideline, report body: ECB
  • date: 2016-12-13T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE595.680 title: PE595.680 type: Committee draft report body: EP
  • date: 2017-01-31T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE597.685 title: PE597.685 type: Amendments tabled in committee body: EP
  • date: 2017-06-29T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/commissions/econ/lcag/2017/06-29/ECON_LA(2017)006572_EN.pdf title: GEDA/A/(2017)006572 type: Coreper letter confirming interinstitutional agreement body: CSL
  • date: 2017-09-11T00:00:00 docs: url: /oeil/spdoc.do?i=29339&j=0&l=en title: SP(2017)633 type: Commission response to text adopted in plenary
  • date: 2017-10-25T00:00:00 docs: url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=ADV&RESULTSET=1&DOC_ID=[%n4]%2F17&DOC_LANCD=EN&ROWSPP=25&NRROWS=500&ORDERBY=DOC_DATE+DESC title: 00037/2017/LEX type: Draft final act body: CSL
  • date: 2016-11-10T00:00:00 docs: url: http://www.connefof.europarl.europa.eu/connefof/app/exp/COM(2016)0461 title: COM(2016)0461 type: Contribution body: IT_CHAMBER
  • date: 2016-10-13T00:00:00 docs: url: http://www.connefof.europarl.europa.eu/connefof/app/exp/COM(2016)0461 title: COM(2016)0461 type: Contribution body: PT_PARLIAMENT
events
  • date: 2016-07-14T00:00:00 type: Legislative proposal published body: EC docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2016/0461/COM_COM(2016)0461_EN.pdf title: COM(2016)0461 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2016&nu_doc=0461 title: EUR-Lex summary: PURPOSE: to strengthen the internal market for venture capital and social entrepreneurship funds by developing the use of EuVECA and EuSEF labels. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides following the ordinary legislative procedure on an equal footing with Council. BACKGROUND: the proposal is part of the work undertaken to stimulate investments in growing and innovative firms. The Investment Plan for Europe presents a global strategy to increase competitiveness and stimulate investments for the purpose of job creation. It aims to further mobilise additional private investment using public funds through the European Fund for Strategic Investment ("EFSI"). A key strand of the Investment Plan is the Capital Markets Union ("CMU") action plan, which contains a range of measures to remove capital market barriers and facilitate the financing of SMEs. Regulation (EU) No 345/2013 of the European Parliament and of the Council and Regulation (EU) 346/2013 of the European Parliament and of the Council lay down uniform requirements and conditions for managers of collective investment undertakings that wish to use in the Union the ‘ EuVECA ’ or ‘ EuSEF’ designations for the marketing of qualifying venture capital funds and qualifying social entrepreneurship funds. While EuVECA funds support young and innovative companies, EuSEF funds focus on enterprises whose aim is to achieve positive social impact. The Commission is seeking to ensure that the EuVECA and EuSEF frameworks work as well as possible in supporting venture capital and social investment. However, the review of the two Regulations under the REFIT initiative (Regulatory Fitness and Performance programme) identified a number of factors holding back the development of these funds , in particular: limitations on large managers whose portfolios exceed EUR 500 million, who may not use the "EuVECA" and "EuSEF" labels, a EUR 100,000 minimum entry ticket for non-professional investors and specific limitations on eligible investments (i.e. the definition of qualifying portfolio undertakings); differing requirements in different jurisdictions, in particular set-up fees, additional costs charged by host Member States and the required levels of sufficient own funds. IMPACT ASSESSMENT: the options retained by the impact assessment are as follows : allow managers authorized under Directive 2011/61/EU of the European Parliament and of the Council on Alternative Investment Fund Managers ("AIFMD") to use the "EuVECA" and "EuSEF" labels; expand the definition of qualifying portfolio undertakings in Regulation (EU) 345/2013; maintain the EUR 100,000 minimum investment; include explicit provisions in the two Regulations (to avoid burdensome administrative processes and additional measures (including fees imposed by host Member States) and non-proportionate requirements imposed by home Member States. CONTENT: the proposal aims to amend Regulation (EU) No 345/2013 on European venture capital funds and Regulation (EU) 346/2013 on European social entrepreneurship funds . The amendments aim to: allow managers authorised under Directive 2011/61/EU that manage portfolios above EUR 500 to use the ‘EuVECA’ and ‘EuSEF’ designations respectively in relation to the marketing of those funds in the Union; amend the definition of qualifying portfolio undertaking in Regulation (EU) No 345/2013 and include unlisted undertakings which employ up to 499 persons and small and medium-sized enterprises listed on a SME growth market; entrust ESMA with the development of draft regulatory technical standards specifying the methodologies for the determination of sufficient own funds; reduce costs by explicitly providing that fees and other charges may not be imposed by competent authorities of host Member States in relation to cross-border marketing of EuVECA and EuSEF funds, by simplifying registration procedures and determining minimum capital requirements to be a manager.
  • date: 2016-09-12T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2017-03-22T00:00:00 type: Vote in committee, 1st reading/single reading body: EP
  • date: 2017-03-22T00:00:00 type: Committee decision to open interinstitutional negotiations with report adopted in committee body: EP
  • date: 2017-03-30T00:00:00 type: Committee report tabled for plenary, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2017-0120&language=EN title: A8-0120/2017 summary: The Committee on Economic and Monetary Affairs adopted the report by Sirpa PIETIKÄINEN (EPP, FI) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 345/2013 on European venture capital funds (EuVECA) and Regulation (EU) No 346/2013 on European social entrepreneurship funds (EuSEF). The committee recommended that the European Parliament’s position, adopted at first reading following the ordinary legislative procedure, should amend the Commission proposal as follows: Investment thresholds : a threshold of EUR 100 000 minimum entry ticket for non-professional investors is maintained for investing in EuVECA funds. The amended text stated that due to their long-term and illiquid nature, venture capital funds are not directly suitable for retail investors other than those described in this Regulation, even in the case where investor protection rules would be strengthened. On the other hand, for EuSEF funds, the threshold of EUR 100 000 should, in any case, be lowered to EUR 50 000 . This would increase access to funding, in particular for smaller and socially engaged firms which are less bankable. It 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. Own funds : the amended text provides that the venture capital funds and the social entrepreneurship funds, whether they are managed internally or externally, shall be provided with an initial capital of EUR 30 000 . Own funds shall always amount to at least one eighth of the fixed overheads incurred by a manager in the preceding year. It is necessary to invest own funds in liquid assets or assets that can be readily converted into cash in the short term. Own funds shall not include speculative positions. At all times, managers of qualifying venture capital funds shall have sufficient own funds to maintain the continuity of the operations. Investor information : managers of funds shall inform their investors of the non-qualifying investments which it intends to make, including the criteria and guidelines which govern the selection of such investments. Managers of qualifying social entrepreneurship funds shall provide a description of how environmental and climate factors are considered in the investment approach of the qualifying social entrepreneurship fund and in particular, information about its exposure to assets whose value may be negatively impacted by legislation necessary to meet the Union's climate targets. Supervision : Members introduced more stringent provisions on surveillance at EU level in order to avoid excessive risk-taking and instability in financial markets and to facilitate cross-border operations. The text provides that the fund managers who intend to use the ‘EuVECA’ and ‘EuSEF’ labels for the marketing of their funds shall inform the relevant competent authority of their home Member State and the European Securities and Markets Authority (ESMA). ESMA shall develop draft regulatory technical standards to specify the information to be provided to the competent authorities and itself in the application for registration of fund managers. ESMA shall perform a coordination and oversight role in order to ensure that a consistent approach is taken by competent authorities in relation to the registration process. ESMA may issue recommendations to competent authorities to change their registration processes. ESMA shall maintain a central database accessible by competent authorities of the home and host Member States for the purposes of the facilitation of the notification process and the required exchange of information. It shall perform an oversight role in order to ensure that a consistent approach is taken by competent authorities in relation to the use of the supervisory and investigatory powers. Management passport : the Commission shall analyse the appropriateness of introducing a management passport for managers of the qualifying venture capital funds and qualifying social entrepreneurship funds and the suitability of the definition of marketing for venture capital. Following the review, the Commission shall submit a report to the European Parliament and to the Council, accompanied, if appropriate, by a legislative proposal.
  • date: 2017-07-11T00:00:00 type: Approval in committee of the text agreed at 1st reading interinstitutional negotiations body: EP docs: url: http://www.europarl.europa.eu/RegData/commissions/econ/inag/2017/06-28/ECON_AG(2017)607904_EN.pdf title: PE607.904 url: http://www.europarl.europa.eu/RegData/commissions/econ/lcag/2017/06-29/ECON_LA(2017)006572_EN.pdf title: GEDA/A/(2017)006572
  • date: 2017-09-13T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20170913&type=CRE title: Debate in Parliament
  • date: 2017-09-14T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=29339&l=en title: Results of vote in Parliament
  • date: 2017-09-14T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2017-0356 title: T8-0356/2017 summary: The European Parliament adopted by 523 votes to 46 with 67 abstentions a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 345/2013 on European venture capital funds and Regulation (EU) No 346/2013 on European social entrepreneurship funds. Parliament’s position adopted in first reading following the ordinary legislative procedure amended the Commission proposal as follows: Purpose of funds: venture capital funds (‘EuVECA’) and social entrepreneurship funds (‘EuSEF’) aim to contribute to mobilisation of investment capital in innovative SMEs and social enterprises in the EU. With respect to EuSEF, these must have the achievement of measurable, positive social impacts as their primary objective, where the undertaking: (i) provides services or goods which generate a social return; (ii) employs a method of production of goods or services that embodies its social objective; or (iii) provides financial support exclusively to social undertakings as defined in the first two indents. Own funds: managers of qualifying venture capital funds and qualifying social entrepreneurship funds, which are not authorised in accordance with Directive 2011/61/EU , must have sufficient own funds at all times. However, it is specified that the level of own funds should be based on cumulative criteria and should be significantly lower and less complex than the amounts laid down in Directive 2011/61/EU to take into account the specificities, nature and small size of those funds. The amended text states that both internally managed qualifying venture capital funds and external managers of qualifying venture capital funds shall have an initial capital of EUR 50 000. Own funds shall at all times amount to at least one eighth of the fixed overheads incurred by the manager in the preceding year. Where the value of the qualifying venture capital funds managed by the manager exceeds EUR 250 million, the manager shall provide an additional amount of own funds. Own funds shall be invested in liquid assets or assets readily convertible to cash in the short term and shall not include speculative positions. Uniform rules of registration and for managers’ conduct : the application for registration shall be made to the competent authority of the qualifying venture capital fund and shall include a list of Member States in which the managers have established qualifying venture capital funds. With regard to EuSEF, a description of how environmental and climate-related risks are taken into account in the investment approach of the qualifying social entrepreneurship funds should be supplied. A manager of a qualifying social entrepreneurship fund shall notify the competent authority of the home Member State of any material changes to the conditions for its initial registration before such changes are implemented. The changes may be implemented if the relevant competent authority does not oppose the changes within the relevant assessment period. Any refusal to register a manager shall be substantiated, shall be notified to the managers and shall be subject to a right of appeal before a national judicial, administrative or other authority. The final information on the basis of which the registration was granted must be made available to the European Securities and Markets Authority (ESMA) in a timely manner after the registration. ESMA shall conduct peer in order to strengthen the consistency of the registration processes carried out by competent authorities in accordance with the Regulation. The competent authority of the home Member State shall be responsible for supervising the organisation of the manager, so that that manager is in a position to comply with the obligations and rules that relate to the constitution and functioning of all the qualifying social entrepreneurship funds that it manages. Where a manager does not observe the rules set out in the Directive, the competent authority of the Member State of origin may prohibit the manager of the qualifying social entrepreneurship fund from using the designation ‘EuSEF’ or EuVECA’ and remove that manager, or the fund concerned, from the register. Management passport : the Commission should analyse the appropriateness of introducing a management passport for managers of qualifying venture capital funds and qualifying social entrepreneurship funds and the suitability of the definition of marketing for venture capital. Following that analysis, the Commission should submit a report to the European Parliament and to the Council, accompanied, if appropriate, by a legislative proposal.
  • date: 2017-10-09T00:00:00 type: Act adopted by Council after Parliament's 1st reading body: EP/CSL
  • date: 2017-10-25T00:00:00 type: Final act signed body: CSL
  • date: 2017-10-25T00:00:00 type: End of procedure in Parliament body: EP
  • date: 2017-11-10T00:00:00 type: Final act published in Official Journal summary: PURPOSE: to strengthen an internal market for qualifying venture capital funds and qualifying social entrepreneurship funds by strengthening the use of designations ‘EuVECA’ and ‘EuSEF’. LEGISLATIVE ACT: Regulation (EU) 2017/1991 of the European Parliament and of the Council of 25 October 2017 amending Regulation (EU) No 345/2013 on European venture capital funds and Regulation (EU) No 346/2013 on European social entrepreneurship funds. CONTENT: this Regulation amends the Regulation on European Venture Capital Funds ( EuVECA ) and the European Social Entrepreneurship Fund ( EuSEF ) which introduced two new types of collective investment funds aimed at making investment in unlisted SMEs easier and more attractive for investors. European Venture Capital Funds (EuVECA) and European Social Entrepreneurship Funds (EuSEF) aim to mobilise more investment capital in innovative SMEs and social enterprises in the EU. The amending regulation is part of the action plan for the establishment of a Capital Markets Union . It aims to open the market for eligible venture capital funds and eligible social entrepreneurship funds to increase scale effects, reduce transaction and operating costs, increase competition and strengthen investor choice. In practical terms, the amending regulation: extends the scope of Regulations (EU) No 345/2013 and (EU) No 346/2013 by opening up the use of the designations ‘EuVECA’ and ‘EuSEF’ to managers of collective investment undertakings authorised under Directive 2011/61/EU , i.e. those with assets under management of more than EUR 500 million; increases the ability of EuVECA funds to invest in small, mid-cap companies and SMEs listed on SME growth markets; clarifies that EuSEF funds shall have the achievement of measurable, positive social impacts as its primary objective in accordance with its articles of association, statutes or any other rules or instruments of incorporation establishing the business; determines the minimum capital required to be a manager: the starting capital must be EUR 50 000. Own funds shall at all times amount to at least one eighth of the fixed overheads incurred by the manager in the preceding year. Own funds shall be invested in liquid assets or assets readily convertible to cash in the short term and shall not include speculative positions; simplifies registration procedures : registration of a manager in accordance with Regulations (EU) No 345/2013 and (EU) No 346/2013 shall also serve the purpose of the registration referred to in Directive 2011/61/EU in relation to the management of the qualifying venture capital funds or qualifying social entrepreneurship funds. Registration decisions and refusals to register shall be subject to administrative or judicial review in accordance with national law; reduces costs by expressly prohibiting the imposition of fees and other charges on the managers for the marketing of such funds if no supervisory task has to be performed; provides that the ESMA shall maintain a central database that is publicly accessible on the internet and that lists all managers of qualifying social entrepreneurship funds using the designation “EuSEF” and the qualifying social entrepreneurship funds for which they use that designation, as well as the countries in which those funds are marketed. The Commission shall examine whether to introduce a management passport for the managers of eligible venture capital funds and eligible social entrepreneurship funds. Following this review, the Commission will have to submit a report to the European Parliament and the Council, accompanied, where appropriate, by a legislative proposal. ENTRY INTO FORCE: 30.11.2017. APPLICATION: from 1.3.2018. docs: title: Regulation 2017/1991 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32017R1991 title: OJ L 293 10.11.2017, p. 0001 url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2017:293:TOC
links
other
  • body: EC dg: url: http://ec.europa.eu/info/departments/financial-stability-financial-services-and-capital-markets-union_en title: Financial Stability, Financial Services and Capital Markets Union commissioner: DOMBROVSKIS Valdis
otherinst
  • name: European Economic and Social Committee
procedure/Mandatory consultation of other institutions
European Economic and Social Committee
procedure/Modified legal basis
Old
Rules of Procedure of the European Parliament EP 150
New
Rules of Procedure EP 159
procedure/Notes
  • 05/04/2017 Decision to enter into interinstitutional negotiations confirmed by plenary (Rule 69c)
procedure/dossier_of_the_committee
Old
ECON/8/07246
New
  • ECON/8/07246
procedure/final/url
Old
http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32017R1991
New
https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32017R1991
procedure/instrument
Old
Regulation
New
  • Regulation
  • Amending Regulation (EU) No 345/2013 2011/0417(COD) Amending Regulation (EU) No 346/2013 2011/0418(COD)
procedure/other_consulted_institutions
European Economic and Social Committee
procedure/subject
Old
  • 2.50.03 Securities and financial markets, stock exchange, CIUTS, investments
  • 3.45.02 Small and medium-sized enterprises (SME), craft industries
  • 3.45.03 Financial management of undertakings, business loans, accounting
  • 3.45.07 Social economy, mutual societies, cooperatives, associations
New
2.50.03
Securities and financial markets, stock exchange, CIUTS, investments
3.45.02
Small and medium-sized enterprises (SME), craft industries
3.45.03
Financial management of undertakings, business loans, accounting
3.45.07
Social economy, mutual societies, cooperatives, associations
procedure/summary
  • Amending Regulation (EU) No 345/2013
  • Amending Regulation (EU) No 346/2013
activities/7/docs/1/text/0
Old

The European Parliament adopted by 523 votes to 46 with 67 abstentions a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 345/2013 on European venture capital funds and Regulation (EU) No 346/2013 on European social entrepreneurship funds. Parliament’s position adopted in first reading following the ordinary legislative procedure amended the Commission proposal as follows:

Purpose of funds: venture capital funds (‘EuVECA’) and social entrepreneurship funds (‘EuSEF’) aim to contribute to mobilization of investment capital in innovative SMEs and social enterprises in the EU.

With respect to EuSEF, these must have the achievement of measurable, positive social impacts as their primary objective, where the undertaking: (i) provides services or goods which generate a social return; (ii) employs a method of production of goods or services that embodies its social objective; or (iii) provides financial support exclusively to social undertakings as defined in the first two indents.

Own funds: managers of qualifying venture capital funds and qualifying social entrepreneurship funds, which are not authorised in accordance with Directive 2011/61/EU, must have sufficient own funds at all times. However, it is specified that the level of own funds should be based on cumulative criteria and should be significantly lower and less complex than the amounts laid down in Directive 2011/61/EU to take into account the specificities, nature and small size of those funds.

The amended text states that both internally managed qualifying venture capital funds and external managers of qualifying venture capital funds shall have an initial capital of EUR 50 000.

Own funds shall at all times amount to at least one eighth of the fixed overheads incurred by the manager in the preceding year. Where the value of the qualifying venture capital funds managed by the manager exceeds EUR 250 million, the manager shall provide an additional amount of own funds.

Own funds shall be invested in liquid assets or assets readily convertible to cash in the short term and shall not include speculative positions.

Uniform rules of registration and for managers’ conduct: the application for registration shall be made to the competent authority of the qualifying venture capital fund and shall include a list of Member States in which the managers have established qualifying venture capital funds.

With regard to EuSEF, a description of how environmental and climate-related risks are taken into account in the investment approach of the qualifying social entrepreneurship funds should be supplied.

A manager of a qualifying social entrepreneurship fund shall notify the competent authority of the home Member State of any material changes to the conditions for its initial registration before such changes are implemented. The changes may be implemented if the relevant competent authority does not oppose the changes within the relevant assessment period.

Any refusal to register a manager shall be substantiated, shall be notified to the managers and shall be subject to a right of appeal before a national judicial, administrative or other authority.

The final information on the basis of which the registration was granted must be made available to the European Securities and Markets Authority (ESMA) in a timely manner after the registration.

ESMA shall conduct peer in order to strengthen the consistency of the registration processes carried out by competent authorities in accordance with the Regulation.

The competent authority of the home Member State shall be responsible for supervising the organisation of the manager, so that that manager is in a position to comply with the obligations and rules that relate to the constitution and functioning of all the qualifying social entrepreneurship funds that it manages.

Where a manager does not observe the rules set out in the Directive, the competent authority of the Member State of origin may prohibit the manager of the qualifying social entrepreneurship fund from using the designation ‘EuSEF’ or EuVECA’ and remove that manager, or the fund concerned, from the register.

Management passport: the Commission should analyse the appropriateness of introducing a management passport for managers of qualifying venture capital funds and qualifying social entrepreneurship funds and the suitability of the definition of marketing for venture capital. Following that analysis, the Commission should submit a report to the European Parliament and to the Council, accompanied, if appropriate, by a legislative proposal.

New

The European Parliament adopted by 523 votes to 46 with 67 abstentions a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 345/2013 on European venture capital funds and Regulation (EU) No 346/2013 on European social entrepreneurship funds. Parliament’s position adopted in first reading following the ordinary legislative procedure amended the Commission proposal as follows:

Purpose of funds: venture capital funds (‘EuVECA’) and social entrepreneurship funds (‘EuSEF’) aim to contribute to mobilisation of investment capital in innovative SMEs and social enterprises in the EU.

With respect to EuSEF, these must have the achievement of measurable, positive social impacts as their primary objective, where the undertaking: (i) provides services or goods which generate a social return; (ii) employs a method of production of goods or services that embodies its social objective; or (iii) provides financial support exclusively to social undertakings as defined in the first two indents.

Own funds: managers of qualifying venture capital funds and qualifying social entrepreneurship funds, which are not authorised in accordance with Directive 2011/61/EU, must have sufficient own funds at all times. However, it is specified that the level of own funds should be based on cumulative criteria and should be significantly lower and less complex than the amounts laid down in Directive 2011/61/EU to take into account the specificities, nature and small size of those funds.

The amended text states that both internally managed qualifying venture capital funds and external managers of qualifying venture capital funds shall have an initial capital of EUR 50 000.

Own funds shall at all times amount to at least one eighth of the fixed overheads incurred by the manager in the preceding year. Where the value of the qualifying venture capital funds managed by the manager exceeds EUR 250 million, the manager shall provide an additional amount of own funds.

Own funds shall be invested in liquid assets or assets readily convertible to cash in the short term and shall not include speculative positions.

Uniform rules of registration and for managers’ conduct: the application for registration shall be made to the competent authority of the qualifying venture capital fund and shall include a list of Member States in which the managers have established qualifying venture capital funds.

With regard to EuSEF, a description of how environmental and climate-related risks are taken into account in the investment approach of the qualifying social entrepreneurship funds should be supplied.

A manager of a qualifying social entrepreneurship fund shall notify the competent authority of the home Member State of any material changes to the conditions for its initial registration before such changes are implemented. The changes may be implemented if the relevant competent authority does not oppose the changes within the relevant assessment period.

Any refusal to register a manager shall be substantiated, shall be notified to the managers and shall be subject to a right of appeal before a national judicial, administrative or other authority.

The final information on the basis of which the registration was granted must be made available to the European Securities and Markets Authority (ESMA) in a timely manner after the registration.

ESMA shall conduct peer in order to strengthen the consistency of the registration processes carried out by competent authorities in accordance with the Regulation.

The competent authority of the home Member State shall be responsible for supervising the organisation of the manager, so that that manager is in a position to comply with the obligations and rules that relate to the constitution and functioning of all the qualifying social entrepreneurship funds that it manages.

Where a manager does not observe the rules set out in the Directive, the competent authority of the Member State of origin may prohibit the manager of the qualifying social entrepreneurship fund from using the designation ‘EuSEF’ or EuVECA’ and remove that manager, or the fund concerned, from the register.

Management passport: the Commission should analyse the appropriateness of introducing a management passport for managers of qualifying venture capital funds and qualifying social entrepreneurship funds and the suitability of the definition of marketing for venture capital. Following that analysis, the Commission should submit a report to the European Parliament and to the Council, accompanied, if appropriate, by a legislative proposal.

activities/11
date
2017-11-10T00:00:00
docs
type
Final act published in Official Journal
procedure/final
url
http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32017R1991
title
Regulation 2017/1991
procedure/stage_reached
Old
Procedure completed, awaiting publication in Official Journal
New
Procedure completed
activities/7/docs/0
url
http://www.europarl.europa.eu/oeil/popups/sda.do?id=29339&l=en
type
Results of vote in Parliament
title
Results of vote in Parliament
activities/7/type
Old
Decision by Parliament, 1st reading/single reading
New
Results of vote in Parliament
activities/8
date
2017-10-09T00:00:00
body
EP/CSL
type
Act adopted by Council after Parliament's 1st reading
activities/10
date
2017-10-25T00:00:00
body
EP
type
End of procedure in Parliament
procedure/stage_reached
Old
Provisional agreement between Parliament and Council on final act
New
Procedure completed, awaiting publication in Official Journal
activities/8
date
2017-10-25T00:00:00
body
CSL
type
Final act signed
procedure/stage_reached
Old
Awaiting Council 1st reading position / budgetary conciliation convocation
New
Provisional agreement between Parliament and Council on final act
activities/7/docs/0/text
  • The European Parliament adopted by 523 votes to 46 with 67 abstentions a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 345/2013 on European venture capital funds and Regulation (EU) No 346/2013 on European social entrepreneurship funds. Parliament’s position adopted in first reading following the ordinary legislative procedure amended the Commission proposal as follows:

    Purpose of funds: venture capital funds (‘EuVECA’) and social entrepreneurship funds (‘EuSEF’) aim to contribute to mobilization of investment capital in innovative SMEs and social enterprises in the EU.

    With respect to EuSEF, these must have the achievement of measurable, positive social impacts as their primary objective, where the undertaking: (i) provides services or goods which generate a social return; (ii) employs a method of production of goods or services that embodies its social objective; or (iii) provides financial support exclusively to social undertakings as defined in the first two indents.

    Own funds: managers of qualifying venture capital funds and qualifying social entrepreneurship funds, which are not authorised in accordance with Directive 2011/61/EU, must have sufficient own funds at all times. However, it is specified that the level of own funds should be based on cumulative criteria and should be significantly lower and less complex than the amounts laid down in Directive 2011/61/EU to take into account the specificities, nature and small size of those funds.

    The amended text states that both internally managed qualifying venture capital funds and external managers of qualifying venture capital funds shall have an initial capital of EUR 50 000.

    Own funds shall at all times amount to at least one eighth of the fixed overheads incurred by the manager in the preceding year. Where the value of the qualifying venture capital funds managed by the manager exceeds EUR 250 million, the manager shall provide an additional amount of own funds.

    Own funds shall be invested in liquid assets or assets readily convertible to cash in the short term and shall not include speculative positions.

    Uniform rules of registration and for managers’ conduct: the application for registration shall be made to the competent authority of the qualifying venture capital fund and shall include a list of Member States in which the managers have established qualifying venture capital funds.

    With regard to EuSEF, a description of how environmental and climate-related risks are taken into account in the investment approach of the qualifying social entrepreneurship funds should be supplied.

    A manager of a qualifying social entrepreneurship fund shall notify the competent authority of the home Member State of any material changes to the conditions for its initial registration before such changes are implemented. The changes may be implemented if the relevant competent authority does not oppose the changes within the relevant assessment period.

    Any refusal to register a manager shall be substantiated, shall be notified to the managers and shall be subject to a right of appeal before a national judicial, administrative or other authority.

    The final information on the basis of which the registration was granted must be made available to the European Securities and Markets Authority (ESMA) in a timely manner after the registration.

    ESMA shall conduct peer in order to strengthen the consistency of the registration processes carried out by competent authorities in accordance with the Regulation.

    The competent authority of the home Member State shall be responsible for supervising the organisation of the manager, so that that manager is in a position to comply with the obligations and rules that relate to the constitution and functioning of all the qualifying social entrepreneurship funds that it manages.

    Where a manager does not observe the rules set out in the Directive, the competent authority of the Member State of origin may prohibit the manager of the qualifying social entrepreneurship fund from using the designation ‘EuSEF’ or EuVECA’ and remove that manager, or the fund concerned, from the register.

    Management passport: the Commission should analyse the appropriateness of introducing a management passport for managers of qualifying venture capital funds and qualifying social entrepreneurship funds and the suitability of the definition of marketing for venture capital. Following that analysis, the Commission should submit a report to the European Parliament and to the Council, accompanied, if appropriate, by a legislative proposal.

activities/7
date
2017-09-14T00:00:00
docs
url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2017-0356 type: Decision by Parliament, 1st reading/single reading title: T8-0356/2017
body
EP
type
Decision by Parliament, 1st reading/single reading
procedure/stage_reached
Old
Awaiting Parliament 1st reading / single reading / budget 1st stage
New
Awaiting Council 1st reading position / budgetary conciliation convocation
activities/6/docs
  • url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20170913&type=CRE type: Debate in Parliament title: Debate in Parliament
activities/7
date
2017-09-14T00:00:00
body
EP
type
Vote in plenary scheduled
activities/6/type
Old
Debate in plenary scheduled
New
Debate in Parliament
activities/6/date
Old
2017-09-11T00:00:00
New
2017-09-13T00:00:00
activities/7/date
Old
2017-09-12T00:00:00
New
2017-09-14T00:00:00
activities/5
date
2017-07-11T00:00:00
docs
url: http://www.europarl.europa.eu/RegData/commissions/econ/inag/2017/06-28/ECON_AG(2017)607904_EN.pdf type: Approval in committee of the text agreed at 1st reading interinstitutional negotiations title: PE607.904 GEDA/A/(2017)006572
body
unknown
type
Approval in committee of the text agreed at 1st reading interinstitutional negotiations
activities/5/type
Old
Indicative plenary sitting date, 1st reading/single reading
New
Debate in plenary scheduled
activities/6
date
2017-09-12T00:00:00
body
EP
type
Vote in plenary scheduled
activities/5/date
Old
2017-10-02T00:00:00
New
2017-09-11T00:00:00
activities/5/date
Old
2017-09-11T00:00:00
New
2017-10-02T00:00:00
activities/5
date
2017-09-11T00:00:00
body
EP
type
Indicative plenary sitting date, 1st reading/single reading
activities/4/docs/0/text
  • The Committee on Economic and Monetary Affairs adopted the report by Sirpa PIETIKÄINEN (EPP, FI) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 345/2013 on European venture capital funds (EuVECA) and Regulation (EU) No 346/2013 on European social entrepreneurship funds (EuSEF).

    The committee recommended that the European Parliament’s position, adopted at first reading following the ordinary legislative procedure, should amend the Commission proposal as follows:

    Investment thresholds: a threshold of EUR 100 000 minimum entry ticket for non-professional investors is maintained for investing in EuVECA funds. The amended text stated that due to their long-term and illiquid nature, venture capital funds are not directly suitable for retail investors other than those described in this Regulation, even in the case where investor protection rules would be strengthened.

    On the other hand, for EuSEF funds, the threshold of EUR 100 000 should, in any case, be lowered to EUR 50 000. This would increase access to funding, in particular for smaller and socially engaged firms which are less bankable. It 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.

    Own funds: the amended text provides that the venture capital funds and the social entrepreneurship funds, whether they are managed internally or externally, shall be provided with an initial capital of EUR 30 000.

    Own funds shall always amount to at least one eighth of the fixed overheads incurred by a manager in the preceding year.

    It is necessary to invest own funds in liquid assets or assets that can be readily converted into cash in the short term. Own funds shall not include speculative positions.

    At all times, managers of qualifying venture capital funds shall have sufficient own funds to maintain the continuity of the operations.

    Investor information: managers of funds shall inform their investors of the non-qualifying investments which it intends to make, including the criteria and guidelines which govern the selection of such investments.

    Managers of qualifying social entrepreneurship funds shall provide a description of how environmental and climate factors are considered in the investment approach of the qualifying social entrepreneurship fund and in particular, information about its exposure to assets whose value may be negatively impacted by legislation necessary to meet the Union's climate targets.

    Supervision: Members introduced more stringent provisions on surveillance at EU level in order to avoid excessive risk-taking and instability in financial markets and to facilitate cross-border operations.

    The text provides that the fund managers who intend to use the ‘EuVECA’ and ‘EuSEF’ labels for the marketing of their funds shall inform the relevant competent authority of their home Member State and the European Securities and Markets Authority (ESMA).

    ESMA shall develop draft regulatory technical standards to specify the information to be provided to the competent authorities and itself in the application for registration of fund managers.

    ESMA shall perform a coordination and oversight role in order to ensure that a consistent approach is taken by competent authorities in relation to the registration process. ESMA may issue recommendations to competent authorities to change their registration processes.

    ESMA shall maintain a central database accessible by competent authorities of the home and host Member States for the purposes of the facilitation of the notification process and the required exchange of information.

    It shall perform an oversight role in order to ensure that a consistent approach is taken by competent authorities in relation to the use of the supervisory and investigatory powers.

    Management passport: the Commission shall analyse the appropriateness of introducing a management passport for managers of the qualifying venture capital funds and qualifying social entrepreneurship funds and the suitability of the definition of marketing for venture capital. Following the review, the Commission shall submit a report to the European Parliament and to the Council, accompanied, if appropriate, by a legislative proposal.

activities/4
date
2017-03-30T00:00:00
docs
url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2017-0120&language=EN type: Committee report tabled for plenary, 1st reading/single reading title: A8-0120/2017
body
EP
committees
type
Committee report tabled for plenary, 1st reading/single reading
procedure/stage_reached
Old
Awaiting committee decision
New
Awaiting Parliament 1st reading / single reading / budget 1st stage
activities/2/body
Old
EP
New
unknown
activities/2/type
Old
Vote scheduled in committee, 1st reading/single reading
New
Committee decision to open interinstitutional negotiations with report adopted in committee
activities/3
date
2017-03-22T00:00:00
body
EP
type
Vote in committee, 1st reading/single reading
committees
procedure/Modified legal basis
Rules of Procedure of the European Parliament EP 150
activities/0/commission/0/DG/title
Old
Internal Market and Services
New
Financial Stability, Financial Services and Capital Markets Union
activities/0/commission/0/DG/url
Old
http://ec.europa.eu/dgs/internal_market/
New
http://ec.europa.eu/info/departments/financial-stability-financial-services-and-capital-markets-union_en
other/0/dg/title
Old
Internal Market and Services
New
Financial Stability, Financial Services and Capital Markets Union
other/0/dg/url
Old
http://ec.europa.eu/dgs/internal_market/
New
http://ec.europa.eu/info/departments/financial-stability-financial-services-and-capital-markets-union_en
procedure/Mandatory consultation of other institutions
Old
Economic and Social Committee
New
European Economic and Social Committee
activities/0/docs/0/celexid
CELEX:52016PC0461:EN
activities/0/docs/0/celexid
CELEX:52016PC0461:EN
activities/1/committees/0/shadows/4
group
Verts/ALE
name
LAMBERTS Philippe
committees/0/shadows/4
group
Verts/ALE
name
LAMBERTS Philippe
activities/1/committees/0/shadows/3
group
GUE/NGL
name
PAPADIMOULIS Dimitrios
committees/0/shadows/3
group
GUE/NGL
name
PAPADIMOULIS Dimitrios
activities/1/committees/0/shadows/3/mepref
Old
53ba83bfb819f24b330001d1
New
53b2e03cb819f205b0000133
activities/1/committees/0/shadows/3/name
Old
ZANNI Marco
New
VON STORCH Beatrix
committees/0/shadows/3/mepref
Old
53ba83bfb819f24b330001d1
New
53b2e03cb819f205b0000133
committees/0/shadows/3/name
Old
ZANNI Marco
New
VON STORCH Beatrix
activities/1/committees/0/shadows/3
group
EFD
name
ZANNI Marco
committees/0/shadows/3
group
EFD
name
ZANNI Marco
activities/1/committees/0/shadows/1
group
ECR
name
KAMALL Syed
committees/0/shadows/1
group
ECR
name
KAMALL Syed
activities/2
date
2017-03-22T00:00:00
body
EP
type
Vote scheduled in committee, 1st reading/single reading
activities/1/committees/0/date
2016-07-12T00:00:00
activities/1/committees/0/rapporteur
  • group: EPP name: PIETIKÄINEN Sirpa
committees/0/date
2016-07-12T00:00:00
committees/0/rapporteur
  • group: EPP name: PIETIKÄINEN Sirpa
activities/1
date
2016-09-12T00:00:00
body
EP
type
Committee referral announced in Parliament, 1st reading/single reading
committees
procedure/dossier_of_the_committee
ECON/8/07246
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision
activities/0/docs/0/text
  • PURPOSE: to strengthen the internal market for venture capital and social entrepreneurship funds by developing the use of EuVECA and EuSEF labels.

    PROPOSED ACT: Regulation of the European Parliament and of the Council.

    ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides following the ordinary legislative procedure on an equal footing with Council.

    BACKGROUND: the proposal is part of the work undertaken to stimulate investments in growing and innovative firms. The Investment Plan for Europe presents a global strategy to increase competitiveness and stimulate investments for the purpose of job creation. It aims to further mobilise additional private investment using public funds through the European Fund for Strategic Investment ("EFSI").

    A key strand of the Investment Plan is the Capital Markets Union ("CMU") action plan, which contains a range of measures to remove capital market barriers and facilitate the financing of SMEs.

    Regulation (EU) No 345/2013 of the European Parliament and of the Council and Regulation (EU) 346/2013 of the European Parliament and of the Council lay down uniform requirements and conditions for managers of collective investment undertakings that wish to use in the Union the ‘EuVECA’ or ‘EuSEF’ designations for the marketing of qualifying venture capital funds and qualifying social entrepreneurship funds. While EuVECA funds support young and innovative companies, EuSEF funds focus on enterprises whose aim is to achieve positive social impact.

    The Commission is seeking to ensure that the EuVECA and EuSEF frameworks work as well as possible in supporting venture capital and social investment. However, the review of the two Regulations under the REFIT initiative (Regulatory Fitness and Performance programme) identified a number of factors holding back the development of these funds, in particular:

    • limitations on large managers whose portfolios exceed EUR 500 million, who may not use the "EuVECA" and "EuSEF" labels, a EUR 100,000 minimum entry ticket for non-professional investors and specific limitations on eligible investments (i.e. the definition of qualifying portfolio undertakings);
    • differing requirements in different jurisdictions, in particular set-up fees, additional costs charged by host Member States and the required levels of sufficient own funds.

    IMPACT ASSESSMENT: the options retained by the impact assessment are as follows :

    • allow managers authorized under Directive 2011/61/EU of the European Parliament and of the Council on Alternative Investment Fund Managers ("AIFMD") to use the "EuVECA" and "EuSEF" labels;
    • expand the definition of qualifying portfolio undertakings in Regulation (EU) 345/2013;
    • maintain the EUR 100,000 minimum investment;
    • include explicit provisions in the two Regulations (to avoid burdensome administrative processes and additional measures (including fees imposed by host Member States) and non-proportionate requirements imposed by home Member States.

    CONTENT: the proposal aims to amend Regulation (EU) No 345/2013 on European venture capital funds and Regulation (EU) 346/2013 on European social entrepreneurship funds. The amendments aim to:

    • allow managers authorised under Directive 2011/61/EU that manage portfolios above EUR 500 to use the ‘EuVECA’ and ‘EuSEF’ designations respectively in relation to the marketing of those funds in the Union;
    • amend the definition of qualifying portfolio undertaking in Regulation (EU) No 345/2013 and include unlisted undertakings which employ up to 499 persons and small and medium-sized enterprises listed on a SME growth market;
    • entrust ESMA with the development of draft regulatory technical standards specifying the methodologies for the determination of sufficient own funds;
    • reduce costs by explicitly providing that fees and other charges may not be imposed by competent authorities of host Member States in relation to cross-border marketing of EuVECA and EuSEF funds, by simplifying registration procedures and determining minimum capital requirements to be a manager.
activities/0/commission/0
DG
Commissioner
DOMBROVSKIS Valdis
other/0
body
EC
dg
commissioner
DOMBROVSKIS Valdis
committees/0/shadows/1
group
ALDE
name
VAN NIEUWENHUIZEN Cora
committees/0/shadows
  • group: S&D name: COZZOLINO Andrea
procedure/Mandatory consultation of other institutions
Economic and Social Committee
activities
  • date: 2016-07-14T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2016/0461/COM_COM(2016)0461_EN.pdf celexid: CELEX:52016PC0461:EN type: Legislative proposal published title: COM(2016)0461 body: EC type: Legislative proposal published commission:
committees
  • body: EP responsible: True committee_full: Economic and Monetary Affairs committee: ECON
  • body: EP responsible: False committee_full: Internal Market and Consumer Protection committee: IMCO
  • body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE
  • body: EP responsible: False committee_full: Legal Affairs committee: JURI
links
other
    procedure
    reference
    2016/0221(COD)
    instrument
    Regulation
    legal_basis
    Treaty on the Functioning of the EU TFEU 114
    stage_reached
    Preparatory phase in Parliament
    summary
    subtype
    Legislation
    title
    European venture capital funds and European social entrepreneurship funds
    type
    COD - Ordinary legislative procedure (ex-codecision procedure)
    subject