Part of the Commission’s Capital Markets Union action plan, the initiative is intended to improve cross-border capital investment flow in the European Union. However, these announced plans to amend the private equity and venture capital laws would, conversely, make it harder for fund managers to raise cross-border capital from EU investors, warns the trade association:
“The Commission’s latest proposal goes against its good intentions for a Capital Markets Union that improves cross-border capital flows,” said Michael Collins, Invest Europe CEO.
Following a recent impact assessment and consultation, the European Commission found a lack of regulatory and supervisory convergence was responsible for limiting cross-border investments in the European Union. This includes divergent national requirements on the use of the marketing passports under the Alternative Investment Fund Managers Directive (AIFMD) and European Venture Capital Fund (EuVECA) Regulation, which allow fund managers to market to investors across the EU.
“While we appreciate the Commission’s intentions to improve the marketing passports, its proposed amendments preventing fund managers from sharing draft marketing materials with investors would impede their ability to negotiate a deal,” continued Collins. “These documents are an important part of the ongoing dialogue between fund managers and investors, including pension funds and insurers. Any legislative revisions need to take into account the way private equity operates.”
Press release
© Invest Europe (formerly EVCA)
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