EVCA calls for regulations to affect billion-euro club
The private equity and venture capital industry has responded to regulatory efforts being imposed by the European Commission by calling for the legislation to only affect large firms managing more than €1bn ($1.4bn).
In its directive on Alternative Investment Fund Managers released in April the EC gave a partial victory to the industry by agreeing that firms that will be affected will those managing €500m rather than the draft plan of €250m.
The EVCA Brussels Task Force, which is co-ordinating the regional trade bodies’ responses to the directive, said this should be doubled again.
It said the proposals were still “inappropriate, unfair and disproportionate” to private equity and should be revised with “more tailored provisions on capital and depository requirements, independent valuation, requirements relating to risk and liquidity and procedures for delegation of authority”.
In particular, the task force said the minimum assets under management for a firm to have to report should be €1bn and an end to discrimination on the industry versus other private company owners.
Jonathan Russell, chairman of EVCA and the Brussels Task Force, said: “While EVCA supports the objectives of the directive, we have serious concerns…. The proposed directive creates an unlevel playing field, putting the industry at a disadvantage to other forms of investment and funds in other jurisdictions.”
-- Write to James Mawson at jmawson@efinancialnews.com
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