Brussels, 01/06/2012 (Agence Europe) - It should be compulsory for a social entrepreneurship fund to have a trustee and be possible for undertakings in collective investment in transferable securities (UCITS) to invest directly in a fund of that nature. Such are the main provisions set out in the draft report by Sophie Auconie (EPP, France) on a legislative proposal aimed at stimulating investment in social entrepreneurship funds, as adopted by the economic and monetary affairs committee of the European Parliament on Thursday 31 May.
The vote comes just one week from the start of inter-institutional negotiations. “Social investment and entrepreneurship are in full development and the EU has a responsibility to support this movement through an investment mechanism which is safe and attractive”, Auconie states in a press release published by the Parliament.
In order to make the mechanism safer and more attractive, the text adopted proposes increasing the security of fund management, by including a trustee who would have the role of ensuring investment is traceable, while also ensuring that fund managers comply with the rules.
The other measures aim to promote investment directly, on one hand by strengthening communication campaigns and, on the other, by allowing the UCITS funds to invest in funds of a social nature, up to 10% of their own funds. Such a possibility is limited in the Commission's initial proposal which sets a minimum investment threshold of €100,000. (JK/transl.jl)