# Regulation (EU) No 345/2013 of the European Parliament and of the Council of 17 April 2013 on European venture capital funds (Text with EEA relevance), Article 21

Extent: E+W+S+N.I.

1. While respecting the principle of proportionality, the FCA 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 ‘RVECA’ 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 ‘RVECA’ 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 FCA 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 ‘RVECA’ and remove that manager, or the qualifying venture capital fund concerned, from the register.
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. The right to market one or more qualifying venture capital funds under the designation ‘RVECA’ in the United Kingdom shall expire with immediate effect from the date of the decision of the FCA referred to in point (b) of paragraph 2.
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Source: https://www.legislation.gov.uk/eur/2013/345/article/21 (the official version)
Page: https://openlegislation.uk/eu-regulation-2013-345/article-21
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.