FESE response on Commission Call on Private Placement Regimes

05 July 2007

FESE issued its response to the Commission’s call for evidence on private placement regimes in Europe noting that there does not appear to be a need to create a European private placement regime at this point. Any specific problems identified in relation to investment funds should be dealt with specifically in that context.

“Moreover, many types of investment funds are already subject to PD, MiFID as well as the Market Abuse and Transparency Obligations Directives”, FESE notes. “The biggest bulk of the primary and secondary market rules applicable to investment funds already take into account the special case of ‘sophisticated’ investors who are the target of a private placement regime.”

FESE also underlines that unintended consequences for securities and funds have to be avoided given that the outcome of the Call suggests that some type of private placement regime is necessary. “We consider it absolutely essential that the scope of any private placement regime does not covers securities or funds that are admitted to trading on Regulated Markets and on MTFs.”

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