Article 21
1.
While respecting the principle of proportionality, the competent authority shall take the appropriate measures referred to in paragraph 2, as applicable, where the manager of a qualifying venture capital fund:
(a)
fails to comply with the requirements that apply to portfolio composition, in breach of Article 5;
(b)
markets, in breach of Article 6, the units and shares of a qualifying venture capital fund to non-eligible investors;
(c)
uses the designation ‘EuVECA’ but is not registered in accordance with Article 14, or the qualifying venture capital fund is not registered in accordance with Article 14a;
(d)
uses the designation ‘EuVECA’ for the marketing of funds which are not established in accordance with point (b)(iii) of Article 3;
(e)
has obtained registration through false statements or any other irregular means, in breach of Article 14 or Article 14a;
(f)
fails to act honestly, fairly or with due skill, care or diligence, in conducting their business, in breach of point (a) of Article 7;
(g)
fails to apply appropriate policies and procedures for preventing malpractices, in breach of point (b) of Article 7;
(h)
repeatedly fails to comply with the requirements under Article 12 regarding the annual report;
(i)
repeatedly fails to comply with the obligation to inform investors in accordance with Article 13.
2.
In the cases referred to in paragraph 1, the competent authority shall, as appropriate:
(a)
take measures to ensure that the manager of a qualifying venture capital fund concerned complies with Articles 5 and 6, points (a) and (b) of Article 7 and Articles 12 to 14a, as applicable;
(b)
prohibit the manager of the qualifying venture capital fund concerned from using the designation ‘EuVECA’ and remove that manager, or the qualifying venture capital fund concerned, from the register.
3.
The competent authority referred to in paragraph 1 shall inform any other relevant competent authority, the competent authorities of any host Member States in accordance with point (d) of Article 14(1), and ESMA, without delay of the removal of a manager of a qualifying venture capital fund or of a qualifying venture capital fund from the register.
4.
The right to market one or more qualifying venture capital funds under the designation ‘EuVECA’ in the Union shall expire with immediate effect from the date of the decision of the competent authority referred to in point (b) of paragraph 2.
5.
The competent authority of the home Member State or of the host Member State, as applicable, shall inform ESMA without delay if it has clear and demonstrable grounds for believing that the manager of a qualifying venture capital fund has committed any of the breaches referred to in points (a) to (i) of Article 21(1).
ESMA may, while respecting the principle of proportionality, issue recommendations in accordance with Article 17 of Regulation (EU) No 1095/2010 addressed to the competent authorities concerned to take any of the measures referred to in paragraph 2 of this Article, or to refrain from taking such measures.