Hidden in the long shadow cast by the AIFM Directive, the European machine has also been working on a new set of regulations aimed at encouraging venture capital financing. On 12 December 2012, the Cyprus Presidency of the EU Council announced that political agreement had finally been reached between the Council and the relevant European Parliament committees on the proposals.
In general, the Regulation will allow EU managers to market EU qualifying venture capital funds to certain EU investors on the basis of a marketing passport, whileimposing fewer compliance obligations than the AIFM Directive. The briefing also highlights some of the challenges that will be faced when trying to fit within the requirements of the Regulation.