Social investment funds : a declaration for a favourable European regulation

Social investment funds : a declaration for a favourable European regulation

Social economy plays a major role in social and environmental transitions in Europe. However, social economy actors have trouble financing their activities : their needs, that are specific to their social utility mission, are not answered by traditional finance. This is a problem that can be met across borders, in the European Union.

This is why innovative social investment funds develop and answer this need for financing. However, those funds aren’t taken into account enough in European regulation : restrictions that were put into place with traditional funds in mind also impact social investment funds and hider their development and their diffusion.
This is the case, for instance, for the French 90/10 fund model : due to regulation, it cannot be sold to retail investors outside of France.

Hence, signatories of this declaration would like to invite the EU to take into account social investment funds, and their contribution to just transitions, in financial regulation.

Indeed, regulation may need to be adapted to allow a better financing of social economy in Europe, which is one of the objectives of the Commission’s Action Plan for social economy.

Signatories of the declaration

FAIR • European Center for Social Finance • European Microfinance Network (EMN) • EVPA • Febea • Financité • Groupe SOS • GSG • Impact Investing Institute • Solifin • Spain Nab • The Stichting Netherlands Advisory Board (NAB) on impact investing