Article 22
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 the qualifying social entrepreneurship fund:
(a)
fails to comply with the requirements that apply to the portfolio composition, in breach of Article 5;
(b)
markets, in breach of Article 6, the units and shares of a qualifying social entrepreneurship fund to non-eligible investors;
(c)
uses the designation ‘EuSEF’ but is not registered in accordance with Article 15, or the qualifying social entrepreneurship fund is not registered in accordance with Article 15a;
(d)
uses the designation ‘EuSEF’ for the marketing of funds which are not established in accordance with point (b)(iii) of Article 3(1);
(e)
has obtained registration through false statements or any other irregular means, in breach of Article 15 or Article 15a;
(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 13 regarding the annual report;
(i)
repeatedly fails to comply with the obligation to inform investors in accordance with Article 14.
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 social entrepreneurship fund concerned complies with Articles 5 and 6, points (a) and (b) of Article 7, and Articles 13 to 15a, as applicable;
(b)
prohibit the manager of the qualifying social entrepreneurship fund concerned from using the designation ‘EuSEF’ and remove that manager, or the qualifying social entrepreneurship 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 15(1), and ESMA, without delay, of the removal of a manager of a qualifying social entrepreneurship fund or of a qualifying social entrepreneurship fund from the register.
4.
The right to market one or more qualifying social entrepreneurship funds under the designation ‘EuSEF’ 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 social entrepreneurship fund has committed any of the breaches referred to in points (a) to (i) of paragraph 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.