The European Parliament has approved a review of the UCITS Directives. The purpose of this is to counteract the fragmentation of the European investment fund sector and improve efficiency. One important aspect is the passport for management companies, which makes it possible for management companies located in one member state to manage at a distance investment funds that have a licence in another member state.
The Directive still requires approval of the Council of the European Communities. However, as an informal compromise has already been reached, this is just a formality. Member states must turn the new rules into national legislation before 1 July 2011.