EuSEF And EuVECA - Update

On September 26^th 2014 the European Securities Markets Authority ("ESMA") issued a consultation paper (the "Consultation Paper") on ESMA's technical advice to the European Commission on the implementing measures of the Regulations on European Social Entrepreneurship funds ("EUSEF") and European Venture Capital Funds ("EUVECA").

A number of provisions in the EuSEF and EuVECA Regulations empower the European Commission to adopt Level 2 measures. 

For EuSEFs, Regulation 346/2013 provides for Level 2 measures specifying:

• the types of goods and services or methods of production for goods and services embodying a social objective, taking into account the different kinds of qualifying portfolio undertakings and those circumstances in which profits may be distributed to owners and investors to ensure that any such distribution of profits does not undermine its primary objective;