BETA

20 Amendments of Andrea COZZOLINO related to 2016/0221(COD)

Andrea COZZOLINO, Pervenche BERÈS

Proposal for a regulation
Recital 6

(6) In order to ensure that competent authorities know about every new use of the ‘"EuVECA’" and ‘"EuSEF’" labels, managers of collective investment undertakings authorised under Article 6 of Directive 2011/61/EU should register each qualifying venture capital fund or qualifying social entrepreneurship fund they intend to manage and market. This should ensure that those managers may maintain their business models by being able to manage collective investment undertakings established in other Member States while further widening the range of products they offer. Furthermore, in order to permit the automatic distribution of standardised information to all stakeholders and to deepen European capital markets' integration, managers of all alternative investment funds, including EuVECA and EuSEF, should be required in the upcoming review of AIFMD to use the global Legal Entity Identifier (LEI) as the unique identifier to identify themselves and the qualifying funds they intend to manage as well as the International Securities Identification Number (ISIN) for identifying the units or shares of such funds.

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Recital 7

(7) The range of eligible undertakings in which qualifying venture capital funds can invest should be expanded to further increase supply of capital to businesses. The definition of qualifying portfolio undertakings should therefore include companies with up to 499 employees (small mid-caps) not admitted to trading on a regulated market or on a multilateral trading facility, and small and medium enterprises listed on SME growth markets. The new investment options should also allow growth stage entities that have already access to other sources of financing, such as SME growth markets, to receive capital from qualifying venture capital funds which in turn should contribute to the development of the SME growth markets. Moreover, the investments from qualifying venture capital funds in qualifying portfolio undertakings will not per se disqualify those qualifying portfolio undertakings from being eligible in public programmes.

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Recital 8 a (new)

(8a) Managers of qualifying venture capital funds and qualifying social entrepreneurship funds, which are not authorised in accordance with Directive 2011/61/EU, are entitled to market such funds within the whole territory of the Union, but not to manage them in cross- border operations.

2017/01/31
Committee: ECON

Pervenche BERÈS, Andrea COZZOLINO

Proposal for a regulation
Recital 9 a (new)

(9a) Environmental-friendly investments are growing quickly in the EU but often lack a suitable regulatory approach. By providing specific rules on an environmental sub-label to EuVECA and EuSEF labels, the visibility of dedicated EuVECA or EuSEF funds would be improved. The power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of specifying the rules on an environmental sub-label.

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Recital 10

(10) It is necessary to clarify that the prohibition for the host Member State to impose requirements or administrative procedures in relation to the marketing of qualifying venture capital funds and qualifying social entrepreneurship funds in its territory includes the prohibition to impose fees and other charges on the managers ~~of those funds~~for the marketing of those funds if no supervisory task has to be performed.

2017/01/31
Committee: ECON

Andrea COZZOLINO, Pervenche BERÈS

Proposal for a regulation
Recital 10 a (new)

(10a) The legal and supervisory frameworks should play a fundamental role in avoiding excessive risk-taking and instability in financial markets and facilitate cross-border operations in a deepened European capital market union; therefore, a strong EU-wide supervision including adequate macroprudential instruments is needed. In the view of the mid-term review 2017 of the CMU programme, supervisory convergence should be improved in the EU on the basis of banking sector´s experience with the SSM framework.

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Recital 11 a (new)

(11a) According to Regulation (EU) No 345/2013 and Regulation (EU) No 346/2013, managers of qualifying venture capital funds and qualifying social entrepreneurship funds, which are not authorised in accordance with Directive 2011/61/EU, are required to have sufficient own funds at all times. In order to have a consistent understanding of this requirement for those managers across the Union, the application of minimum capital requirements and additional own funds should be provided for in this regulation.

2017/01/31
Committee: ECON

Pervenche BERÈS, Andrea COZZOLINO

Proposal for a regulation
Article 1 – paragraph 1 – point 2 a (new)

Regulation (EU) No 345/2013
Article 5 a (new)

(2a) The following Article is inserted: "Article 5a The Commission shall be empowered to adopt delegated acts in accordance with Article 26 specifying the conditions by which qualifying venture capital funds can use the denomination 'EuVECA green fund'."

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Article 1 – paragraph 1 – point 2 a (new)

Regulation (EU) No 345/2013
Article 10 paragraph 2

~~"2. At all times,~~(2a) Article 10(2) is replaced by the following: "2. Both internally and externally manage~~rs of~~d qualifying venture capital funds shall ensure that they are able to justify the sufficiency of their own funds to maintain operational continuity and disclose their reasoning as to why those funds are sufficient as specified in Article 13." be provided with an initial capital of EUR 75 000. 2a. The own funds shall always amount to at least one fourth of the fixed overheads that the same manager incurred in the preceding year. Where a significant change in a firm's business occurs since the previous year, the competent authorities may adjust such a requirement. If a manager of a qualifying venture capital fund has not completed a year's business, the requirement shall amount to a fourth of the fixed overheads expected in his business plan, unless the competent authority of the home Member State of the manager requires an adjustment to that plan. 2b. If the qualifying venture capital funds exceed EUR 250 000 000, the manager of those funds is required to provide an additional amount of own funds. Such an additional sum shall correspond to 0,02% of the amount by which the total value of the qualifying venture capital funds exceeds EUR 250 000 000. 2c. It is necessary to invest own funds in liquid assets or assets that can be readily converted into cash in the short term. Own funds shall not include speculative positions." Or. en (http://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=CELEX:32013R0345&from=EN)

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Article 1 – paragraph 1 – point 3

Regulation (EU) No 345/2013
Article 10 – paragraph 3

(3) In Article 10, the following paragraph 3 is inserted: ‘3. ESMA shall develop draft regulatory technical standards specifying the methodologies to determine what constitutes sufficient own funds. Those methodologies shall: (a) distinguish between what constitutes sufficient own funds for internally managed qualifying venture capital funds and sufficient own funds for managers of qualifying venture capital funds which are external managers; (b) take into account the size and internal organisation of the managers referred to in paragraph 1 of Article 2 in order to ensure neutral conditions of competition between those managers and managers referred to in paragraph 2 of that Article; (c) ensure that the amounts resulting from the application of those methodologies do not exceed the amounts laid down in Article 9 of Directive 2011/61/EU. ESMA shall submit those draft regulatory technical standards to the Commission by [18 months after the date of entry into application of this Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.;’deleted

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Article 1 – paragraph 1 – point 5

Regulation (EU) No 345/2013
Article 14 a – paragraph 2 a (new)

2a. The competent authority of the qualifying venture capital fund shall ask the competent authority of the manager for information whether qualifying venture capital fund fall within the scope of the manager's authorisation to manage AIFs and whether the conditions laid down in Article 14 (2) point (a) are fulfilled. The competent authority of the manager shall provide an answer within 10 working days from the date on which it received the request submitted by the competent authority of the qualifying venture capital fund.

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Article 1 – paragraph 1 – point 5

Regulation (EU) No 345/2013
Article 14 a – paragraph 2 b (new)

2b. Managers of collective investment undertakings authorised under article 6 of directive 2011/61/EU shall not be required to provide information or documents, which the management company has already provided when applying for authorisation under directive 2011/61/EU, if these documents and information remain up to date.

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Article 1 – paragraph 1 – point 5

Regulation (EU) No 345/2013
Article 14a – paragraph 4

4. The managers referred to in paragraph 1 shall be informed by the competent authority of the qualifying venture capital fund on whether that fund has been registered as a qualifying venture capital fund no later than tw~~o month~~enty days after those managers have provided all the information referred to in paragraph 2.

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Article 1 – paragraph 1 – point 6

Regulation (EU) No 345/2013
Article 16 – paragraph 1 – subparagraph 1

The competent authorities of the home Member States shall notify the competent authorities of the host Member States and ESMA immediately of any registration of a manager of a qualifying venture capital fund, any addition of a new qualifying venture capital ~~fund, any addition of a new domicile for the establishment of a qualifying venture capital~~ fund or of any addition of a new Member State in which a manager of a qualifying venture capital fund intends to market those funds.

2017/01/31
Committee: ECON

Pervenche BERÈS, Andrea COZZOLINO

Proposal for a regulation
Article 2 – paragraph 1 – point 2 a (new)

Regulation (EU) No 346/2013
Article 5 a (new)

(2a) The following Article is inserted after Article 5: "Article 5a The Commission shall be empowered to adopt delegated acts in accordance with Article 26 specifying the conditions by which qualifying venture capital funds can use the denomination "EuSEF green fund"."

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Article 2 – paragraph 1 – point 2 a (new)

Regulation (EU) No 346/2013
Article 11 – paragraphs 2a – 2d (new)

~~"2. At all times,~~(2a) In Article 11, paragraph 2 is deleted and the following paragraphs are inserted: "2a. Both internally and externally manage~~rs of~~d qualifying social entrepreneurship funds shall ensure that they are able to justify the sufficiency of their own funds to maintain operational continuity and disclose their reasoning as to why those funds are sufficient as specified in Article 14." venture capital funds shall be provided with an initial capital of EUR 75 000. 2b. The own funds shall always amount to at least one fourth of the fixed overheads that the same manager incurred in the preceding year. Where a significant change in a firm's business occurs since the previous year, the competent authorities may adjust such a requirement. If a manager of a qualifying venture capital fund has not completed a year's business, the requirement shall amount to a fourth of the fixed overheads expected in his business plan, unless the competent authority of the home Member State of the manager requires an adjustment to that plan. 2c. If the qualifying venture capital funds exceed EUR 250 000 000, the manager of those funds is required to provide an additional amount of own funds. Such an additional sum shall correspond to 0,02% of the amount by which the total value of the qualifying venture capital funds exceeds EUR 250 000 000. 2d. It is necessary to invest own funds in liquid assets or assets that can be readily converted into cash in the short term. Own funds shall not include speculative positions." Or. en (http://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=CELEX:32013R0346&from=EN)

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Article 2 – paragraph 1 – point 3

Regulation (EU) No 346/2013
Article 11 - paragraph 3

(3) In Article 11, the following paragraph 3 is added: ‘3. ESMA shall develop draft regulatory technical standards specifying the methodologies to determine what constitutes sufficient own funds. Those methodologies shall: (a) distinguish between what constitutes sufficient own funds for internally managed qualifying social entrepreneurship funds and sufficient own funds for managers of qualifying social entrepreneurship funds which are external managers; (b) take into account the size and internal organisation of the managers referred to in paragraph 1 of Article 2 in order to ensure neutral conditions of competition between those managers and managers referred to in paragraph 2 of that Article; (c) ensure that the amounts resulting from the application of those methodologies do not exceed the amounts laid down in Article 9 of Directive 2011/61/EU. ESMA shall submit those draft regulatory technical standards to the Commission by [18 months after the date of entry into application of this Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.;’deleted

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Article 2 – paragraph 1 – point 5

Regulation (EU) No 346/2013
Article 15a – paragraphs 2 a (new) + 2 b (new)

2a. The competent authority of the qualifying venture capital fund shall ask the competent authority of the manager for information whether qualifying venture capital fund fall within the scope of the manager's authorisation to manage AIFs and whether the conditions laid down in Article 15 (2) point (a) are fulfilled. The competent authority of the manager shall provide an answer within 10 working days from the date on which it received the request submitted by the competent authority of the qualifying venture capital fund. 2b. Managers of collective investment undertakings authorised under article 6 of directive 2011/61/EU shall not be required to provide information or documents, which the management company has already provided when applying for authorisation under directive 2011/61/EU, if these documents and information remain up to date.

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Article 2 – paragraph 1 – point 5

Regulation (EU) No 346/2013
Article 15a – paragraph 4

4. The managers referred to in paragraph 1 shall be informed by the competent authority of the qualifying social entrepreneurship fund on whether that fund has been registered as a qualifying social entrepreneurship fund no later than tw~~o month~~enty days after those managers have provided all the information referred to in paragraph 2.

2017/01/31
Committee: ECON

Andrea COZZOLINO

Proposal for a regulation
Article 2 – paragraph 1 – point 6

Regulation (EU) No 346/2013
Article 17 – paragraph 1 – subparagraph 1

The competent authorities of the home Member States shall notify the competent authorities of the host Member States and ESMA immediately of any registration of a manager of a qualifying social entrepreneurship fund, any addition of a new qualifying social entrepreneurship ~~fund, any addition of a new domicile for the establishment of a qualifying social entrepreneurship~~ fund or of any addition of a new Member State in which a manager of a qualifying social entrepreneurship fund intends to market those funds.

2017/01/31
Committee: ECON