The EU Commission Contemplates Amendments to the Criteria Required to Qualify as a Professional Investor
Published 8 October 2021
The EU Commission has, as part of its strategy for retail investors, completed a consultation process that, among others, invited the industry to share its views on the existing professional investor categorization, including the introduction of a new category of professional investors, in MiFID II – see more here.
Currently, under MiFID II, retail investors are defined as those that do not qualify as professional investors and are subject to a number of additional investment protection measures, including additional disclosure information. In its consultation paper, the EU Commission suggests that for certain investors that currently fall under the retail investor category, these additional investment protection measures are not necessary. Therefore, the creation of a new category of professional investors would likely give a subset of investors a broader and more comprehensive access to alternative investment funds.
Next Step: The EU Commission expects to submit a comprehensive legislative package in the second quarter of 2022 as part of its strategy for retail investors, which, among others, will include a proposal that amends the criteria required to qualify as a professional investor .
Also tagged ‘Marketing’
The report is part of the EU Commission’s overall effort to create a unified standard for sustainable economic activities in the European Union, which is expected to significantly impact the private equity and venture capital industry.AIFMDDisclosure RequirementsGovernanceMarketing
On 16 April 2019, the European Parliament adopted the European Commission's initiatives to improve the efficiency of cross-border distribution of Alternative Investment Funds (AIFs) and EuVECA funds by increasing transparency and harmonising diverging national rules.AIFMDCross-BorderMarketingPre-MarketingRetail InvestorsVenture Capital
The EU Commission has published a proposal to amend the EU insurance directive (known as "Solvency II") so that insurance companies can scale up long-term investments.Solvency II
New Rules for the Calculation and Presentation of Risks, Rewards and Costs in Key Information Documents
The EU Commission has amended the EU delegated regulation for the presentation and the content of the Key Information Document (KID) that sets out information on risks, rewards and costs to be given to retail investors (i.e. non-professional investors) in good time before they invest in alternative investment funds etc.KID / PRIIPS
The EU Platform on Sustainable Finance has published its draft reports on the merits and potential design of a social taxonomy.Sustainability
The Commission has postponed the date of application of the detailed regulatory technical standards (RTS) under the ESG Disclosure Regulation and the Taxonomy Regulation by six months from 1 January 2022 to 1 July 2022.ComplianceCross-BorderDanish Regulation
The Commission has answered a number of questions from the European Supervisory Authorities (ESAs) regarding the ESG Disclosure Regulation.ComplianceCross-BorderDanish Regulation