Key Elements of Legal and Tax Regimes Optimal for the Development of Private Equity
The EMPEA Guidelines identify elements of legal and tax regimes that experience from other markets has demonstrated will help attract robust international and local private equity and venture capital investment. The Guidelines are intended to serve as a general framework for constructive dialogue amongst all stakeholders – policymakers, regulators and investors – to strike a balance between effective protections and overly restrictive regulatory approaches that stymie investment flows. Already a part of conversations with policy makers and regulators in Africa and Asia, the Guidelines represent another step in EMPEA's efforts to inform regulatory approaches that will increase private equity flows and spur economic development.
Updates from the Road: Putting the Guidelines to Work
To respond to and shape the changing currents in the global regulatory landscape, EMPEA is working to introduce the Guidelines as a framework for dialogue with regulators. We continue to explore oppportunities to grow the asset class throuch such dialogue.
Morocco, March 2013: In March 2013, the Guidelines served as a starting point for discussion led by the Moroccan PE and VC Association, AMIC, with Moroccan government officials, regulators and local industry stakeholders about potential reforms that could enhance the environment for private equity and help to create a central hub of financial activity for the North and West African region.
World Bank Group's Financial and Private Sector Development (FPD) Forum 2012, November 2012: Last November, EMPEA presented the Guidelines to a standing room-only crowd at the World Bank Group's Financial and Private Sector Development (FPD) Forum 2012. With our partners within the Non-Bank Financial Institutions Group, we continue to explore ways integrate the Guidelines and thinking behind them into future World Bank projects and products.
The guidelines comprise 10 specific topics important to private investment and should be read in conjunction with the detail and supporting materials that follow.
- Effective, clear and flexible corporate and securities laws, with the ability to negotiate rights in capital structures.
- Conformity to international standards of business integrity and anti-corruption.
- Clear, consistent and internationally competitive taxation.
- Reliable and consistent approach to dispute resolution and enforcement.
- Non-discriminatory treatment of cross-border investment.
- Efficient, transparent and fair regulatory environment.
- Transparent and reliable rules for expropriation.
- Stable and fair framework for property rights.
- Flexibility in insolvency proceedings and fairness for stakeholders.
- Ability to contract freely, with minimum prescription by statute.
EMPEA Guidelines: A Legal and Regulatory Framework for Global Private Equity
EMPEA Professional Development Webcast
Join EMPEA’s Legal and Regulatory Council in a public dialogue about the EMPEA Guidelines. Council members provide an in-depth look at how private equity firms, local counsel and other industry advisors can put the Guidelines to work as reference material in their discussions with regulators, policymakers and investors. In addition to addressing audience questions about the Guidelines, this interactive discussion also delves into practical considerations regarding engagement on these issues. Be a part of this public dialogue shaping your industry’s next steps in the development of private equity. Watch Webcast Recording »