The Commission has identified several measures, in particular in the RCAP, which should be taken to encourage the growth of risk capital markets. These include:
(a) promoting a culture of entrepreneurship;
(b) easing fiscal constraints on equity, such as less favourable treatment than that given to debt financing;
(c) measures to foster market integration;
(d) easing regulatory constraints, including limitations on investments by certain types of financial institutions (e.g. pension funds) and administrative procedures for setting up companies.
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