The European Parliament draft report extends the definition of professional investor to investors

• That have committed to investing a minimum of €100,000 and have stated in writing, in a document separate from the contract incorporating the commitment to invest, that they are aware of the risks associated with the envisaged commitment or investment; or
• That are executives, portfolio managers, directors, officers, agents or employees of the manager or its affiliates and have sufficient knowledge about the AIF concerned.

These additions widen the scope of the marketing passport and may increase the use of co-investment financing in relation to AIFs. The PRIIPs Regulation should be amended in line with these new categories of professional investor since they may require a KID.

Access the draft report of 16 May 2022 from the European Parliament here.