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01/09/2017

Proposed amendments on EuVECA & EuSEF regulation

On 30 May 2017, the EU Council and EU Parliament have reached political agreement at trilogue negotiations on rules governing investment funds in relation to venture capital and social enterprises.

On 30 May 2017, the EU Council and EU Parliament have reached political agreement at trilogue negotiations on rules governing investment funds in relation to venture capital and social enterprises. They agreed to:

  • extend the range of managers eligible to market and manage European venture capital funds (EuVECA) and European social entrepreneurship funds (EuSEF) to larger fund managers meaning those with assets under management of more than €500 millions
  • expand the ability of EuVECA funds to invest in unlisted companies with up to 499 employees (small mid-caps) and SMEs listed on SME growth markets
  • decrease the costs by explicitly prohibiting fees imposed by competent authorities of host Member States where no supervisory activity is performed in terms of next steps.

The agreed text has to be submitted to the Permanent Representatives Committee (COREPER) for endorsement on behalf of the Council.  The Parliament and Council will be called on to adopt the proposed regulations at first reading.