CESR is consulting on critical aspects of the proposed UCITS management company passport. The Commission wants CESR to advise it on how it can be sure investors in funds managed cross border will not be subject to any more risks, or given any less regulatory protection, than investors in domestically managed UCITS. The consultation covers:
- definition of domicile and how to distinguish the home Member State of the management company, despository and UCITS;
- applicable law and analysis of supervisory requirements, and how to allocate them between the relevant authorities;
- authorisation procedure for UCITS funds whose management company is established in another Member State;
- on going supervision of the management of the fund, including effective information exchange and co-operation between supervisors; and
- dealing with breaches of rules governing the management of the fund.
CESR asks for comment by 15 October, as it needs to send its advice to the Commission by 1 November.