Alongside the adoption of the Directive 2011/61/UE on Alternative Investment Fund Manager (“AIFM”), European legislators adopted Regulation (EU) no 345/3013 on European venture capital funds (the “EuVECA Regulation”) which established the EuVECA regime. This EuVECA regime has been available since 2013 but did not get the traction EU officials would have expected as only a small number of funds have to date been set-up under that regime.

The European Commission then decided to bring forward the review of the EuVECA Regulation and on 14 July 2016 a legislative proposal was published. It was understood that a trilogue between the European Commission, the Council of the EU and the European Parliament on such proposal would take place. On 11 May 2017 the first trilogue has indeed taken place.

The aim of this trilogue was to exchange on some of the concerns related to the impediments to a proper implementation of the EuVECA regime, main ones being:

  • Co-existence of the AIFM and EuVECA regime;
  • Eligible assets;
  • Level of own funds: it was acknowledged that the EuVECA regime should not be too burdensome while taking into account the concerns of certain Member States; and
  • Management passport and definition of marketing.

On 30 May 2017, the European Commission published a press release concerning the agreement reached between the European institutions, particularly regarding the following proposals:

  • To extend the range of managers eligible to market and manage EuVECA funds to larger fund managers;
  • To expand the ability of EuVECA funds to invest in small mid-caps and Small and medium-sized enterprises (“SMEs”) listed on SME growth markets.
  • To decrease the costs by explicitly prohibiting certain fees imposed by competent authorities of host Member State.
  • To simplify the registration process and determine the minimum capital necessary to become a manager.

The press release is available on the European Commission’s website.


ESMA publishes updated AIFM and UCITS Q&A

On 24 May 2017, the European Securities and Markets Authority (“ESMA”) published an updated question and answers document (“Q&A”) on the application of the Alternative Investment Fund Managers Directive (“AIFM”) and the Undertakings for the Collective Investment in Transferable Securities Directives (“UCITS”).

The following new questions and their respective answers have been included in the AIFM Q&A:

  1. Reporting to National Competent Authorities (“NCAs”) and breakdown between retail and professional investors;
  2. Notification of AIFMs on the Alternative Investment Funds (“AIFs”) to be managed, if domiciles in another Member State; and
  3. Use by an AIF of the exemption for intragroup transactions under Article 4 (2) of Regulation (EU) 648/2012 (“EMIR”), if subject to the clearing obligation of Article 4(1) of EMIR.

The AIFM Q&A is available on ESMA’s website.


Regarding the UCITS Q&A, the following new question and its respective answer has been included:

  • Application to UCITS of the exemption for intragroup transactions under article 4 (2) of EMIR, if subject to the clearing obligation of Article 4 (1) of EMIR.

The UCITS Q&A is available on ESMA’s website.