The Channel Islands have responded to the Commission’s consultation on the review of the European Venture Capital funds (EuVECA) regulation. The response was submitted by CIBO on behalf of the Guernsey and Jersey governments and with input from the two financial regulators (GFSC and JFSC). It provides insights on how potential changes to the regulation could improve the takeup of the EuVECA passport and thus increase investment in EU SMEs. In particular the Channel Islands recommend that the Commission extends the passport to fund managers from third countries who operate equivalent supervisory regimes. In addition the Channel Islands agreed that extending the qualifying investment criteria and the qualifying portfolio company conditions would make EuVECA funds more attractive to investors. In return for more relaxed rules and a broader range of assets, the Islands argue that the regulatory regime be strengthened from the current registration requirements to an authorisation process for managers of EuVECA funds.
This consultation contribution is part of ongoing engagement by Guernsey and Jersey with the EU institutions in support of the Commission’s Capital Markets Union (CMU) initiative which is designed to strengthen the EU’s capital markets and increase the attractiveness of the EU to international investment in support of growth and jobs.