The text of a regulation amending the European Venture Capital Funds (EuVECA) and the European Social Entrepreneurship Funds (EuSEF) Regulations has now been published in the Official Journal of the EU and will apply from 1 March 2018.
As mentioned in Issue 7 of the Roundup, these amendments form part of the Capital Markets Union (CMU) and are intended to increase the take up of EuVECAs and EuSEFs by:
- Widening the range of managers eligible to set up and manage these funds to include larger managers with assets under management of more than €500 million.
- Widening the range of entities that EuVECAs can invest in to include unlisted companies with up to 499 employees (SMEs) and SMEs listed on SME growth markets.
- Broadening the definition of enterprises that EuSEFs can invest in to include “services and goods generating social return”.
- Prohibiting the imposition by host Member States of administrative procedures, fees and other charges relating to marketing of such funds cross-border.
The new rules also give ESMA an oversight role to ensure that EuVECAs and EuSEFs are consistently registered and supervised.