EUROPE: EFAMA Welcomes Vote on UCITS IV

Tuesday December 2 2008

The European Fund and Asset Management Association (EFAMA) has welcomed today’s vote on UCITS IV noting it as a big step towards a real single market for investment funds.

The Parliamentary Economic and Monetary Affairs Committee (ECON) have voted in favour of adopting the reform with a management company passport at today’s ECOFIN Council meeting showing an important milestone in the adoption process of UCITS IV.

Discussions between the European Parliament, EU states and the Commission will start soon on a final deal, the fund industry is confident that the Directive can be adopted in early 2009.

It is thought that the new directive will enhance the industry’s efficiency due to the acceleration of the notification procedure, and new rules on mergers and master-feeder funds as well as the

Management Company Passport. It is also thought that the decision will reduce costs for the industry and give investors a wider choice of lower-cost funds.

The new concept of Key Investor Information will boost an already high level of investor protection.

The President of EFAMA, said:

“Today’s vote is a major step towards an efficient internal market. By including the management company passport into the UCITS Directive, MEPs and Member States have demonstrated their strong will to extend to fund management the freedom to provide services across the European Union. Together with the new arrangements for supervisory cooperation, mergers and master-feeder structures as well as clear provisions on key investor information, the fund industry is in a better position to face the future.”