On 20 January 2012, the government published a letter setting out its preliminary views on the Commission’s proposals for regulations on smaller Venture Capital Funds and Social Entrepreneurship Funds.
On 20 January 2012 the government published a letter to the Lower House setting out its preliminary views regarding the European Commission proposals for a European regulation on European Venture Capital Funds(“VCFs”) and a European regulation on European Social Entrepreneurship Funds (“SEFs”). These proposals provide for a European framework (including passporting rights) for the marketing to “professional investors” of VCFs and SEFs that are exempted under the Alternative Investment Fund Managers Directive (“AIFMD”) due to their size (i.e. ‘registration only’ regime due to assets under management not exceeding €500 million or €100 million for non-leveraged, five-year close-end funds). The government is positive concerning the proposal for a European regulation on VCFs. In contrast, it does not consider it necessary to establish a European framework for SEFs. In the government’s opinion, the practical implications of both proposals and potential implementation issues should be carefully looked into. Furthermore, implementation should not result in excessive administrative costs. Due attention should be given to the relation between the AIFMD and the proposed regulations, notably in terms of potential inconsistencies.