Publications
& Policy

The EuVECA voluntary passport is becoming more and more popular for venture capital fund managers, most of whom operate below the required threshold for AIFMD compliance. 

The Markets in Financial Instruments Regulation (MiFIR) and Directive (MiFID II), referred to in this Guide as “MiFID”, are in force since January 2018.

In recent years, tax transparency has become a key issue for the EU and more broadly for international policymakers. There are several policy initiatives which are of particular relevance from a private equity perspective.

The idea of introducing a European Financial Transaction Tax (FTT) became popular in the aftermath of the 2008 financial crisis. However, a formal proposal in 2011 for a pan-European FTT failed to get unanimous backing from EU countries. Eleven member states decided to continue discussions on the project, although progress has been very slow. A new Franco-German push did generate headlines and new political momentum behind the European FTT plan in 2019.

The EU Insolvency Directive is important for the convergence of restructuring laws in Europe. In short, the rules stipulate what must be done when a portfolio company is struggling financially. The EU last updated insolvency rules during the last parliament as part of the Capital Markets Union project.

In this response we stress our concerns with the proposed Delegated Regulation defining the conditions for use of the different approaches to determine the market risk of a bank's investment in private equity.

On behalf of the PAE, Invest Europe responded to the consultation on the 'Unified Approach' under Pillar One of the OECD's digital tax work.

As the economy becomes increasingly global, so the response to tax avoidance is also moving onto an international stage, with the OECD emerging as the leading organisation for creating new standards. Supporting its position, the EU is also taking action to address aggressive tax avoidance and improve global tax good governance.

The European Union has established three supervisory authorities (ESAs) in the financial sector: the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA) as well as a macroprudential supervisor, the European Systemic Risk Board (ESRB).

Read more about the private equity industry's key policy priorities for 2019 to 2024 in our Manifesto.

On behalf of the PAE, Invest Europe responded to the ESMA consultation on undue short-term pressure from the financial sector on corporations.

On behalf of the PAE, Invest Europe responded to the European Commission consultation on the State Aid Modernisation package.

A two-page document describing all of Invest Europe's policy achievements over the last legislative term.

In this response, we stress the need for ESMA to stick to a high-level principles-based approach, recognising the diversity among market practitioners and allowing a certain level of flexibility in implementation (according to the proportionality principle). In addition, it is important to avoid treating ESG as a standalone or overriding risk category in the deal process, but rather to consider it as a category of direct business risks, which should be incorporated in existing functions and processes.

In this response, we express our support for ESMA’s proposed high-level principles-based approach, avoiding overly prescriptive rules, which could increase the risk of regulatory arbitrage. We also support ESMA’s recognition that any changes introduced should be applied by firms with the proportionality principle in mind, taking into account the size, nature, scale and complexity of their activities.