A detailed briefing for Invest Europe members on regulation affecting the private equity industry.
In this paper, the PAE welcomes the opening of interinstitutional negotiations on the insolvency file and puts forward several suggestions including on the cross-class cram down, voting procedure for approval of restructuring plans, debt-discharge period for entrepreneurs and the stay on enforcement of actions.
In this response the PAE details the industry's concerns regarding the scope of the Key Information Document Regulation and the need to adapt it to sophisticated investors. It also highlights the irrelevance of existing performance scenarios for closed-ended and illiquid funds.
In this response we stress the industry's support to the creation of a new category of long term equity exposures subject to a lower risk-weight, while explaining why the criteria proposed by the Commission to determine which investments fall into this category are inappropriate from our perspective.
The findings of a survey of investors from the US, China, France, Germany and the UK. It outlines opinions on issues important to investors, such as capital markets strength, innovation and sustainability, and shows strong appetite for European investments.
In this response we outline several concerns regarding the EBA suggested approach to define the concepts of “investments in private equity” or “investments in venture capital firms” in the context of Article 128 of the Capital Requirements Regulation, as the proposed definitions could create more confusion than clarity, disicentivise banks' investment into private equity and venture capital funds and create a negative precedent for the industry in other legislation.
An in-depth study which outlines the tax environments for the private equity and venture capital industry around Europe, carried out in association with KPMG.
An introduction to the voluntary passport regime offered by the revised European Venture Capital Fund Regulation.
This consultation response explains that problems may arise as under the new standard, unrealised gains/losses would be immediately reflected in the Profit and Loss Statement (P&L). We propose flexibility to allow recycling for investors, i.e. to recognize unrealized gains and losses in Other Comprehensive Income and then recycle to the P&L, or if it wished to recognize unrealized gains and losses in the P&L straight away, then this would avoid unrealised gains/losses being immediately reflected in the P&L while not enabling the investor to use recycling as an earnings management tool.
This position paper raises the concerns of private equity firms holding MiFID license regarding the new prudential regime proposed by the European Commission. It suggests that the new regime will lead to a significant increase in capital requirements for these investment firms, which is not proportionate to the risk they pose.
Martin Bresson
Public Affairs Director
Erika Blanckaert
Senior Public Affairs Manager
Xandra Hjort
Public Affairs Officer
Conor Quinn
Public Affairs Officer
Christophe Verboomen
Public Affairs Manager
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