On 22 July 2009, the Council of the European Union issued a press statement concerning its adoption of a Directive on undertakings for collective investment in transferable securities (UCITS), following a first reading agreement with the European Parliament.
The aim of the Directive is to update the regulatory framework for European investment funds and thereby:
- Offer investors more products at lower cost through better integration of the internal market.
- Suitably protect investors with thorough high-quality information and more efficient supervision.
- Maintain the competitiveness of European industry by adjusting the regulatory framework to developments in the market.
The specific objectives met by the Directive are to:
- Improve investor information by creating a standardised summary information document: "key information for investors".
- Create a genuine European passport for UCITS management companies which should make for greater diversity in the products offered to consumers.
- Facilitate cross-border marketing of UCITS by simplifying administrative procedures.
- Facilitate cross-border mergers of UCITS, which will make it possible to increase the average size of European funds.
- Facilitate asset pooling by creating a framework for the system of "master-feeder" arrangements whereby a fund invests more than 85 per cent of its assets in another fund.
- Strengthen the supervision of UCITS and of the companies that manage them, by means of enhanced co-operation between supervisors.
View Directive of the European Parliament and of the Council on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (recast), 22 July 2009