New Rules for EU Investment Funds

The Council has adopted a directive on undertakings for collective investment in transferable securities (UCITS).

The most important objectives are:

• improving investor information by creating a standardised summary information document: “key information for investors”; the document will be tried out with consumers before it is finalised;
• a genuine European passport for UCITS management companies – a management company located in a Member State will be able to manage funds in other Member States;
• facilitating crossborder marketing of UCITS by simplifying administrative procedures;
• facilitating crossborder mergers of UCITS – authorisation will be assigned to a single supervisor, in conjunction with the other supervisor concerned, so as to make the procedures more efficient;
• facilitating asset pooling by creating a framework for the system of “master-feeder” arrangements whereby a fund invests more than 85 % of its assets in another fund;
• strengthening the supervision of UCITS and of the companies that manage them, by means of enhanced cooperation between supervisors – the Directive encourages the exchange of information between supervisors, harmonises the powers of supervisors, and allows for the possibility of on-the-spot investigation, consultation mechanisms and mutual-aid mechanisms for the imposition of penalties, in particular.