Tag Archives: UCITS

New EU Legislation on Investment Issues

Two new legal acts have been published in the Official Journal that deal with the investment process. Regulation (EC) No 1060/2009 on credit rating agencies introduces a common regulatory approach in order to enhance the integrity, transparency, responsibility, good governance and reliability of credit rating activities. Directive 2009/65/EC applies to undertakings for collective investment in transferable securities (UCITS) established within the territory of the European Union.

Both acts are quite detailed.


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.