The EU Commission Contemplates Amendments to the Criteria Required to Qualify as a Professional Investor
Published 8 October 2021
Category: AIFs
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 .
Tags: Marketing
Also tagged ‘Marketing’
ESMA has Issued Guidelines on Marketing Communication
The guidelines apply to all marketing communication addressed to investors or potential investors for AIFs, including amongst others when they are set up as EuVECAs.
Cross-BorderESMAMarketingPre-MarketingVenture CapitalEuropean Commission has Launched a Public Consultation on a Retail Investment Strategy
On 11 May 2021, the European Commission launched a public consultation on a retail investment strategy for Europe.
AIFMDMarketingPre-MarketingRetail InvestorsThe EU Technical Expert Group on Sustainable Finance publishes their Taxonomy Technical Report
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 RequirementsGovernanceMarketingCouncil Approves Regulation on Cross-Border Distribution of AIFs
On 14 June 2019 the Council adopted the new regulation on facilitating cross-border distributions of AIFs.
Cross-BorderMarketingPre-MarketingVenture CapitalNew Directive to Amend AIFMD has been Adopted
On 14 June 2019 the Council adopted the new directive amending i.a. the Alternative Investment Fund Managers Directive (AIFMD).
AIFMDCross-BorderMarketingPre-MarketingRetail InvestorsVenture CapitalEU Parliament Approves Final Compromise to Amend AIFMD
Highlights include a definition of pre-marketing, rules on de-notification in countries with no investor interests and rules on facilities made available to retail investors.
AIFMDCross-BorderMarketingPre-MarketingRetail InvestorsCross-Border Distribution of Collective Investments Undertakings
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 CapitalEU Parliament Approves Final Compromise on Proposed Regulation on Cross-Border Distribution of AIFs
The new regulation establishes uniform rules on i.a. fees and charges, and it amends the EuVECA regulation to include a pre-marketing definition.
Cross-BorderMarketingPre-MarketingOther updates
New ESG KPI Report by Invest Europe
Invest Europe, the trade association representing Europe’s private equity and venture capital sector, has published its first ESG KPI report with data from 2021.
GovernanceVenture CapitalNew countries have been added to the EU tax blacklist
On 14 February 2023, the British Virgin Islands, Costa Rica, the Marshall Islands, and the Russian Federation have been added to the EU tax blacklist by the EU Council.
Cross-BorderGovernanceEU Markets in Crypto-assets Regulation (MiCA) impending
The EU Markets in Crypto-Assets Regulation (MiCA) is expected to be passed in April 2023 according to the European Parliament’s legislative updates.
Crypto-assetsMiCAELTIF 2.0 now published in the OJEU
The amendments include a broader scope of eligible assets, a simplified definition of ‘retail assets’, which include lighter retail investor requirements, and an increased market capitalization threshold.
Retail InvestorsThematic review of sustainability disclosures for funds with sustainable investment as the objective
On 3 February 2023, the Danish Financial Supervisory Authority (“DFSA”) published a thematic review of sustainability disclosures for eight funds with sustainable investments as their objective.
ComplianceDisclosure RequirementsSustainabilityELTIF 2.0 Adopted
On 15 February 2023, the European Parliament has voted in favour of an update to the EU’s Regulation for Long-Term Investment Funds (ELTIFs), also known as ELTIF 2.0.
Retail Investors