Article 21
1. The competent authority of the home Member State shall, while respecting the principle of proportionality, take the appropriate measures referred to in paragraph 2 where a manager of a qualifying venture capital fund:
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(a) |
fails to comply with the requirements that apply to portfolio composition, in breach of Article 5; |
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(b) |
markets, in breach of Article 6, the units and shares of a qualifying venture capital fund to non-eligible investors; |
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(c) |
uses the designation ‘EuVECA’ but is not registered in accordance with Article 14; |
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(d) |
uses the designation ‘EuVECA’ for the marketing of funds which are not established in accordance with point (b)(iii) of Article 3; |
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(e) |
has obtained registration through false statements or any other irregular means, in breach of Article 14; |
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(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; |
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(g) |
fails to apply appropriate policies and procedures for preventing malpractices, in breach of point (b) of Article 7; |
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(h) |
repeatedly fails to comply with the requirements under Article 12 regarding the annual report; |
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(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 of the home Member State shall, as appropriate:
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(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, 13 and 14; |
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(b) |
prohibit the use of the designation ‘EuVECA’ and remove the manager of a qualifying venture capital fund concerned from the register. |
3. The competent authority of the home Member State shall inform the competent authorities of the host Member States in accordance with point (d) of Article 14(1) and ESMA, without delay, of the removal of the manager of a qualifying venture capital fund from the register referred to in point (b) of paragraph 2 of this Article.
4. The right to market one or more qualifying venture capital funds under the designation ‘EuVECA’ expires with immediate effect from the date of the decision of the competent authority referred to in point (b) of paragraph 2.