The Commission is consulting on a wide-ranging working document on several aspects of the UCITS framework. The initiative complements the European Securities and Markets Authority’s (ESMA) guidelines on UCITS Exchange Traded Funds (ETFs) and the Commission’s shadow banking project and recent consultation on UCITS depositories, remuneration and sanctions. The Commission wants more information on seven aspects of how UCITS operate:
- eligible assets and use of derivatives;
- efficient portfolio management (EPM) techniques, with reference specifically to use of repos and securities lending by UCITS managers;
- use of OTC derivatives;
- extraordinary liquidity management rules;
- depository passports;
- money market funds (MMFs), including their role in maintaining liquidity for investors; and
- long-term investments, including allowing retail investors to take a longer-term view of their investments.
Consultation closes on 18 October 2012.
(Source: Commission Consults on UCITS Framework)