7 Amendments of Dominique RIQUET related to 2013/0214(COD)
Amendment 9 #
Proposal for a regulation
Recital 1
Recital 1
(1) Long-term finance is a crucial enabling tool for putting the European economy on a path of sustainable, smart and inclusive growth in line with the Europe 2020 strategy and for building tomorrow's economy in a way that is less prone to systemic risks and is more resilient. European long-term investment funds (ELTIFs) provide finance to various infrastructure projects or unlisted companies of lasting duration that issue equity or debt instruments for which there is no readily identifiable buyer. By providing finance to such projects, ELTIFs contribute to the financing of the Union econom's real economy and the implementation of its policies.
Amendment 10 #
Proposal for a regulation
Recital 3
Recital 3
(3) Financing for projects, regarding transport infrastructure, sustainable energy generation or distribution, social infrastructure (housing or hospitals), roll- out of new technologies and systems that reduce use of resources and energy or the further growth of SMEs, can be scarce. As the financial crisis has shown, complementing bank financing with a wider variety of financing sources that better mobilise capital markets could help tackle financing gaps. ELTIFs can play a crucial role in this respect. For certain projects they could make use of resources such as innovative financial instruments to supplement public funding eroded by the sovereign debt crisis.
Amendment 12 #
Proposal for a regulation
Recital 6
Recital 6
(6) In the absence of a Regulation setting out rules on ELTIFs, diverging measures might be adopted at national level, which are likely to cause distortions of competition resulting from differences in investment protection measures. Diverging requirements on portfolio composition, diversification and eligible assets, in particular the investment in commodities, create obstacles to the cross-border marketing of funds that focus on non-listed undertakings and real assets because investors cannot easily compare the different investment propositions offered to them. Divergent national requirements also lead to different levels of investor protection. Furthermore, different national requirements pertaining to investment techniques, such as the permitted levels of borrowing, use of derivative financial instruments, rules applicable to short selling or securities financing transactions lead to discrepancies in the level of investor protection. In addition, different requirements on redemption and/or holding periods impede the cross-border selling of funds investing in non-listed assets. TBy increasing legal uncertainty, those divergences can undermine the confidence of investors when considering investments in such funds, and reduce the scope for investors to choose effectively between various long-term investment opportunities. Consequently,Member States should accordingly not be allowed to stipulate additional requirements in the area covered by this Regulation and the appropriate legal basis for this Regulation ishould be Article 114 of the Treaty, as interpreted by consistent case law of the Court of Justice of the European Union.
Amendment 13 #
Proposal for a regulation
Recital 16
Recital 16
(16) The definition of what constitutes a long-term investment is broad. Without necessarily requiring long-term holding periods for the ELTIF manager, eligible investment assets are generally illiquid, require commitments for a certain period of time, and have an economic profile of a long-term nature. Eligible investment assets are non-transferable securities and therefore do not have access to the liquidity of secondary markets. They often require fixed term commitments which restrict their marketability. The economic cycle of the investment sought by ELTIFs is essentially of a long-term nature due to the high capital commitments and the length of time required to produce returns. As a result such assets do not suit investments with redemption rights. If it emerges that the duration of the ELTIF is no longer adapted to asset life cycles or the profitability of the projects concerned by it, the ELTIF manager should have the option of increasing or reducing its life cycle.
Amendment 14 #
Proposal for a regulation
Recital 32
Recital 32
(32) Notwithstanding the fact that ELTIFs do not offer redemption rights before the end of life of the ELTIF, nothing should prevent an ELTIF from seeking admission of these shares or units to a regulated market as defined in Article 4(14) of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments,10 to a multilateral trading facility as defined in Article 4(15) of Directive 2004/39/EC, or to an organised trading facility as defined in point (…) of Regulation (…), thus providing investors with an opportunity to sell their units or shares before the end of life of the ELTIF. The rules or instruments of incorporation of an ELTIF should therefore not prevent units or shares from being admitted to or from being dealt in regulated markets, nor should they prevent investors from freely transferring their shares or units to third parties who wish to purchase those shares or units. However, ELTIF activities on these markets should be regulated and should, for example, be excluded from the composition of derivatives. __________________ 10 OJO L 145, du 30.4.2004, p.1.
Amendment 15 #
Proposal for a regulation
Article 16 – paragraph 2
Article 16 – paragraph 2
2. The life of the ELTIF shall be sufficient in length to cover the life-cycle of each of the individual assets of the ELTIF, measured according to the illiquidity profile and economic life-cycle of the asset, and the stated investment objective of the ELTIF. In this connection, if it emerges that the duration of the ELTIF is no longer adapted to asset life cycles or the profitability of the projects concerned by it, the ELTIF manager may, exceptionally, increase or reduce its life cycle. He shall, within a reasonable period, inform investors of the new ELTIF expiry date.
Amendment 16 #
Proposal for a regulation
Article 16 – paragraph 4
Article 16 – paragraph 4
4. Investors shall always have the option to be repaid in cash, subject to any restrictions applicable to cash payments in the various Member States.