Documents considered by the Committee on 22 March 2017 Contents

9Financial services and the Capital Markets Union

Committee’s assessment

Politically important

Committee’s decision

Cleared from scrutiny (decision reported on 14 December 2016). Further information requested

Document details

(a) Proposed Regulation concerning venture capital funds and social entrepreneurship funds; (b) European Central Bank Opinion on the proposed Regulation concerning venture capital funds and social entrepreneurship funds

Legal base

(a) Article 114 TFEU, ordinary legislative procedure, QMV; (b) —

Department

HM Treasury

Document Numbers

(a) (37956), 11303/16 + ADDs 1–2, COM(16) 461; (b) (38102), —

Summary and Committee’s conclusions

9.1In September 2016 the Commission proposed a Regulation to amend the Regulations governing European Venture Capital Funds and European Social Entrepreneurship Funds, with the aim, in the context of the Capital Markets Union, of increasing uptake of these funds. In December 2016, having heard of an improved Presidency text being adopted by the Council as its General Approach, we cleared the proposal, and an associated European Central Bank Opinion, from scrutiny. However, we asked the Government to keep us informed of developments in the European Parliament’s consideration of the proposed Regulation.

9.2The Government has now given us a detailed account of the European Parliament’s Economic and Monetary Affairs Committee’s consideration of the proposal, which might lead to adoption of a European Parliament text on 22 or 23 March 2017 and which would allow the trilogue process to commence.

9.3We are grateful for this present information from the Government and look forward to hearing, in due course, about the outcome of the trilogue negotiation.

Full details of the documents

(a) Proposed Regulation amending Regulation (EU) No. 345/2013 on European venture capital funds and Regulation (EU) No. 346/2013 on European social entrepreneurship funds: (37956), 11303/16 + ADDs 1–2, COM(16) 461; (b) European Central Bank Opinion of 12 September 2016 on a proposed Regulation amending Regulation (EU) No. 345/2013 on European venture capital funds and Regulation (EU) No. 346/2013 on European social entrepreneurship funds (CON/2016/44): (38102), —.

Background

9.4In September 2016 the Commission proposed, in the context of building the Capital Markets Union, a Regulation to amend the Regulations governing European Venture Capital Funds (EuVECA) and European Social Entrepreneurship Funds (EuSEF), with the aim of increasing uptake of these funds. We have been considering the proposal, together with an associated European Central Bank Opinion, for several months. In December 2016 the Government told us of an improved Presidency text being adopted by the Council as its General Approach, about which it said that the proposed changes would encourage the uptake of EuVECAs and EuSEFs, increasing financing for SMEs and social causes. Given that information the Government gave us we cleared these documents from scrutiny. However, we asked the Government to keep us informed of developments in the European Parliament’s consideration of the proposed Regulation.

The Minister’s letter of 15 March 2017

9.5The Economic Secretary to the Treasury (Simon Kirby) has now told us of developments so far in the European Parliament’s consideration of the proposed Regulation. He reported that:

9.6The Minister continued that on 13 December 2016, the lead rapporteur, Ms Sirpa Pietikäinen (European People’s Party), published a draft report of amendments and that the main amendments she proposed included:

9.7The Minister told us that following publication of the draft report ECON held a second discussion of the proposed Regulation on 12 January 2017, that MEPs had a difference of opinion in areas that included lowering of the investor threshold, the approach to own funds, and the role of ESMA, and that following this discussion, MEPs submitted amendments to the proposed report. He then summarised the discussion on the submitted amendments, which took place on 27 February 2017, as follows:

9.8The Minister commented that:

9.9Finally, the Minister told us that MEPs would agree compromise amendments for the final European Parliament text, on which it would vote on 22 or 23 March 2017, and that, if sufficient votes were reached, the trilogue process would commence.

Previous Committee Reports

Twenty-fourth Report HC 71-xxii (2016–17), chapter 12 (14 December 2016), Eighteenth Report HC 71-xvi (2016–17), chapter 9 (18 November 2016) and Eleventh Report HC 71-ix (2016–17), chapter 7 (14 September 2016).


51 €1 = £0.85305 as at 3 March 2017.




24 March 2017