Lord Hill referred to the issue of passporting for investment funds in his recent speech providing an update on the European Commission’s review of the EU regulatory framework for financial services. In his speech, Lord Hill said that a passporting system that works for investment funds is fundamental to the single market for capital. However, smaller fund managers complain that they struggle to offer their products in different countries. The gold plating by national supervisors, additional fees, and different requirements for marketing material get in the way. If this is true, Lord Hill considers the position unacceptable and said that the Commission will launch a consultation in May 2016 to identify the main barriers to funds, including UCITS, operating in other countries. After that, the Commission will improve passporting so that investors have more choice and enjoy lower charges, and investment funds can genuinely compete across borders