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Publication of amendments on EuVECA and EuSEF Regulations

18/01/2018

On 10 November 2017, the Regulation (EU) 2017/1991 amending previous regulations on European Venture Capital Funds (EuVECAs) and on European Social Entrepreneurship Funds (EuSEFs) has been published in the Official Journal of the European Union and will be applicable as of 1 March 2018.

On 10 November 2017, the Regulation (EU) 2017/1991 amending previous regulations on European Venture Capital Funds (EuVECAs) and  on European Social Entrepreneurship Funds (EuSEFs) has been published  in the Official Journal of the European Union and will be applicable as of 1 March 2018. The amendments to the Regulations are a result of the European Commission’s review process launched in 2016 which identified a lack of success of the two Regulations, especially that of the EuSEF regulation.  It remains to be seen whether the aforementioned amendments willincrease market acceptance of the EuVECA and EuSEF labels, as there is still no tax incentives for the use of such labels. Nonetheless, it should be noted that the EuVECA and EuSEF labels do grant significant practical advantages not accessible to other alternative investment funds managed by authorised AIFMs, the most noteworthy being the absence of a legal requirement to appoint a depositary and a simplified marketing process.

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