On 14 July 2016, the European Commission published a legislative proposal for a Regulation amending the European Venture Capital Funds Regulation (EuVECA Regulation) and the European Social Entrepreneurship Funds Regulation (EuSEF Regulation). The proposed Regulation contains amendments to the EuVECA Regulation and the EuSEF Regulation that will, among other things:

  • Allow managers of collective investment undertakings authorised under Article 6 of the AIFMD that manage portfolios of qualifying venture capital and qualifying entrepreneurship funds to use the EuVECA and EuSEF designations respectively in relation to the marketing of those funds in the EU.
  • Expand the range of qualifying investments permitted under the EuVECA Regulation to allow investment in small mid-caps and small and medium-sized enterprises listed on SME growth markets.
  • Prohibit competent authorities of host member states from imposing fees and other charges relating to cross-border marketing of EuVECA and EuSEF funds.

This legislative proposal forms part of the Commission's initiative to establish a capital markets union (CMU).