fundraising special - BVCA admin

AifM Directive
The BVCA Regulatory Committee this month submitted our response to the Committee
of European Securities Regulators (CESR) call for evidence on implementing measures for
the Alternative Investment Fund Managers Directive (AIFMD) – the next key stage in the
process. There are numerous Delegated Acts to work through with much still to play for
and we will continue to push for sensible interpretations on all of our key issues, at both
Commission level and to make sure there is no sense of ‘gold-plating’ by the FSA.
Furthermore, we recently saw the creation of ESMA, the new markets supervisory
authority (to supersede CESR), which now has responsibility for AIFMD and regulation of
our industry more generally. It will be vital that we secure a significant UK presence within
ESMA and a significant private equity and venture capital presence in an advisory capacity.
These were the key messages put forward by CEO Simon Walker when giving evidence
to the Treasury Select Committee in December and he urged questioners to put similar
points to Commissioner Barnier when he testified a week later. Policy leads have been
apportioned to national regulators and it is important that the UK will be responsible for
transparency (leverage) though we will need to keep a close eye on depositories as the
policy lead has gone to France (completing the quartet are Germany with responsibility
for authorisation and Ireland for scope).
The FSA has also convened six working groups to study the detail of the various provisions
and the BVCA has successfully nominated individuals to all of those groups. The European
Commission is still looking at implementation in early 2013 though this looks to be a very
optimistic timetable. Nevertheless we will continue to work with all the key stakeholders
to bring a speedy end to a process that has produced so much investor uncertainty.
Takeover Panel
At the end of October the UK Takeover Panel published its response to a wide-ranging
consultative review of UK takeover rules and issues. Whilst the proposals are still in outline,
in many areas the proposed changes are significant and could have a considerable impact
on the private equity industry. The key issues include:
• Break fees and other inducement fees will no longer be permitted.
• Potential bidders will have to be publically named in any ‘possible offer’ announcements.
• Greater disclosure will be necessary as bidders must reveal details of their financing and
advisory fees. Each party must also provide estimates for advisory and financing fees.
The BVCA urges member firms which may be affected to write to the Panel to express
their dismay at the negative impact these changes will have on takeover activity and more
importantly on shareholder value. A template letter is available on request.
BVCA consultation responses
BVCA
Post-election
Breakfast
Briefing
As 2010 drew to a close, so did one
of the BVCA’s most successful events:
the Post-Election Breakfast Briefing
Series. Between June and December,
the BVCA, in partnership with Baker
& McKenzie who kindly supplied the
venue, held a series of speeches from
distinguished political and economic
commentators offering their expert
insights across a wide range of themes.
Tim Hames – former leader writer at
the Times and then special adviser
to the Speaker of the House of
Commons, and now at the BVCA –
kicked off the series with a talk about
how a Coalition Government is likely
to work. The next saw Brian Groom,
business & employment editor at the
Financial Times, give his thoughts
on the British economy, and then
Julian Astle, director at liberal think
tank Centreforum, gave the Liberal
Democrat perspective on the future
of the Coalition. In November, the
BVCA’s Colin Ellis, chief economist, gave
an overview of the macro-economic
situation, before proceedings were
wrapped up in December by Rt Hon
Peter Riddell, a senior fellow of the
Institute for Government and former
political commentator for the Times.
This is not the end of the story. The
BVCA along with our partners Baker
& McKenzie will be producing a white
paper based on the series in February.
For more information please contact
Leon De Bono, +44 (0)20 7420 1853,
ldebono@bvca.co.uk.
The BVCA’s technical committees have responded to a number of consultations in recent months, ensuring the industry remains active
in policy discussions. Recent submissions include:
• The Department of Energy and Climate Change consultation on simplifying Carbon Reduction Commitments
• BIS Consultation on the long term future of corporate Britain
• ESMA call for evidence on AIFMD Level II
• Science and Technology Select Committee enquiry into Technology and Innovation Centres
All of these are available to view on the BVCA’s website: http://www.bvca.co.uk/Newsroom/Government-submissions.
January 2011 BVCA Briefing 23