Proposed amendments to EuVECA and EuSEF Regulations look to facilitate the supply of capital for venture capital and social enterprise funds
Proposals have been published by the EU Commission to stimulate interest in line with the Europe 2020 Strategy. The EU Commission published the European Venture Capital Funds Regulations (EU) No. 345/2013 (EuVECA) and the European Social Entrepreneurship Funds Regulations (EU) No. 346/2013 (EuSEF).
The Regulations came into force in July 2013, but they have not attracted much success or attention so far. The European Securities and Markets Authority (ESMA) has only been notified of seventy EuVecas and four EuSEFs registrations. The low level of registrations is surprising when one considers the advantages that these funds have over other alternative investment funds:
The Commission's proposals for changes to the existing Regulations were published on 14 July 2016. National parliaments had the opportunity to express subsidiarity concerns by 17 October 2016, but none did so, which means that the proposals will now proceed to committee discussion within the European Parliament.
These proposals were made outside of the agreed scheduled reviews of the effectiveness of the EuVeca and EuSEF Regulations and are encouraging because they demonstrate the readiness of the Commission to take steps to build the Capital Markets Union.
If you would like further information on this topic, please contact Trevor Dolan, Partner in the Financial Services Department at firstname.lastname@example.org.