The law on various financial provisions has been successfully passed prior to the dissolution of parliament. The new legislative text introduces several amendments throughout the Belgian financial legislation a.o. provisions of the AIFM Law (April 19, 2014) regulating the Pricaf Privée.
A direct link to the legislative text can be found here.
The new legislation puts an end to the discussion pertaining to which provisions of the AIFM Law specifically apply to the Pricaf Privée. The discussion has been settled by introducing a new article to the AIFM Law that exhaustively enumerates which provisions apply to a Pricaf Privée. The amendment thus settles the discussion whether or not the minimum capital requirements of EUR 1.200.000 pursuant to the AIFM Law applicable to a SICAF equally apply to a Pricaf Privée. It has now been clarified that solely the minimum capital requirements pursuant to the Belgian Company Code apply to the Pricaf Privée (it should be noted that the Belgian Company Code will be replaced by the Belgian Code of Companies and Associations as from May 1, 2019). In the event that a Pricaf Privée is compartmentalized, each compartment will have to meet the aforementioned minimum capital requirement pursuant to the Belgian Company Code.
A second welcome amendment pertains to the definition of the ‘non-listed companies’ in which the Pricaf Privée is permitted to invest. The definition has been broadened to include non-listed companies established outside of the European Economic Area. The result of the amendment is a return to the period prior to the introduction of the AIFM law in 2014, when investments in companies outside of the European Economic Area were indeed permitted.
The above amendments will apply as from 10 days following the publication of the legislative text in the Belgian Offical Gazette.
Furthermore, the new legislation provides for a few provisions regarding the digitalization of the exchange of information between a.o. the Pricaf Privée and the Federal Public Service Finance (SPF Finances). These provisions will enter into force at a date determined by Royal Decree.
We also refer to our previous article where we discussed the amendments that were made in 2018.
Of course, Tiberghien remains available for any additional information or questions relating to the adapted legislation of the Pricaf Privée.
Private equity and M&A team
Steven van Berkel - Associate (steven.vanberkel@tiberghien.com)
Quentin Masure - Associate (quentin.masure@tiberghien.com)
Bernard Peeters - Partner (bernard.peeters@tiberghien.com)