Proposals for the Regulation of Venture Capital and Private Equity after the Financial Crisis

Seminar Paper , 2010 , 31 Pages , Grade: 2,0

Business economics - Investment and Finance

In this seminar paper, I demonstrate and evaluate proposals for the regulation of VC and PE including HF in Germany, Europe and the United States (US) after the global financial crisis. In the first chapter of the main part, I describe the impacts of the financial crisis on PE and VC. In the second part, a short overview of the present regulatory framework in Germany, Europe and the United States is presented. The core of this seminar paper will be chapter 4, 5 and 6 in which proposals and its assessment for a regulation of PE and VC after the financial crisis are exposed, especially the so-called Alternative Investment Fund ManagerDirective (AIFMD), an European initiative to regulate fund manger’s activities. Further, the estimation of the AIFMD by the European PE and VC Association (EVCA), the “Bundesverband Deutscher Kapitalbeteiligungsgesellschaften (BVK)” and the international press will offer an all-embracing appraisal. With an executive summary, I conclude my seminar paper.

Table of Contents

List of Figures

List of Attachments

List of Abbreviations

1.0 Introduction

2.0 Impacts of the Global Financial Crisis on Private Equity and Venture Capital

3.0 Overview of the Present Regulatory Activity
3.1 Germany
3.1.1 The „Unternehmensbeteiligungsgesellschaft (UBG)“
3.1.2 The Capital Investment Company and the „Investmentaktien­gesellschaft nach dem Investmentgesetz (InvG)“
3.2Europe
3.2.1 The Markets in Financial Instruments Directive (MiFID)
3.2.2 The Alternative Investment Fund Managers Directive (AIFMD)
3.3 United States
3.3.1 The Investment Company Act (ICA)
3.3.2 The Investment Advisors Act (IAA) and the Securities and Exchange Commission (SEC)
3.3.3 The Securities Act and the Securities Exchange Act
3.3.4 The Dodd-Frank Wall Street Reform

4.0 Proposals for the Regulation of Private Equity and Venture Capital after the Financial Crisis
4.1 Germany
4.1.1 Regulatory Interest Groups
4.1.2 Regulatory Framework
4.2 Europe
4.2.1Regulatory InterestGroups
4.2.2 Regulatory Framework: The AIFM Directive
4.2.2.10versightandControl
4.2.2.2 Operating Conditions
4.2.2.3 Disclosure to Regulators
4.3 United States
4.3.1 Regulatory Interest Groups
4.3.2 Regulatory Framework
4.3.2.1 Establishment of a Systemic Risk Regulator
4.3.2.2 Interdiction of Investment in PE Funds by Banks
4.3.2.3 Taxation of Private Equity Firms

5.0 Estimation of the Alternative Investment Fund Management

Directive by the European Private Equity and Venture Capital Association (EVCA) , the “Bundesverband Deutscher Kapital­beteiligungsgesellschaften (BVK)” and the International Press

6.0 Evaluation and Assessment
6.1 Evaluation ofPresent Regulation
6.1.1 Germany: The “Unternehmensbeteiligungsgesellschaft(UBG)” and the “Investmentgesellschaft nach dem Investmentgesetz (InvG)”
6.1.2 Europe: The Markets in Financial Instruments Directive (MiFID)
6.1.3 United States: The Frank-Dodd Wall Street Reform
6.2 Evaluation ofProposed Options
6.2.1 Germany: Self-Regulation, Skill-enhancement, Acting in Concert and the “Risikobegrenzungsgesetz”
6.2.2 Europe: The AIFM Directive
6.2.3 United States: Skill-Enhancement, Protective Mechanisms, the Financial Services Oversight Council, Interdiction of Investment in PE Funds by Banks, Taxation and the Regulationof Banks

7.0 Executive Summary

Appendix

List of References

• College: Technical University of Munich
• Grade: 2,0
• Author: Silvia Weißmacher (Author)
• Publication Year: 2010
• Pages: 31
• Catalog Number: V187151
• ISBN (eBook): 9783656104964
• ISBN (Book): 9783656105770
• Language: German
• Tags: proposals, regulation, venture, capital, private, equity, financial, crisis