The Committee of European Securities Regulators (CESR) has published its final Level 3 guidelines which address the issue as to whether hedge fund indices could be properly classified as “financial indices” for the purposes of the UCITS Directive. The guidelines also complement the Level 2 implementing Directive (Directive 2007/16/EC of 19 March 2007 implementing Council Directive 85/611/EEC on the co-ordination of Law, Regulations and administrative provisions relating to UCITS as regards to the clarification of certain definitions) and supplement CESR’s Level 3 guidelines concerning eligible assets for investment by UCITS.

At the same time as publishing the Level 3 guidelines CESR has also published a Feedback Statement. The Feedback Statement not only covers the Level 3 guidelines but also contains feedback on:

  • CESR Issues Paper, Can hedge fund indices be classified as financial indices for the purposes of UCITS? (CESR/06-530, October 2006); and
  • CESR Consultation Paper, Clarification of the definitions concerning eligible assets for investment by UCITS: can hedge fund indices be classified as financial indices for the purposes of UCITS? (CESR/07-045, February 2007).

View CESR final Level 3 guidelines on hedge find indices, 17 July 2007