New framework for investment funds

The European Fund and Asset Management Association (EFAMA) Secretary General Steffen Matthias was concerned about the Commission’s “soft” stance on creating a level playing field among UCITS and similar investment products, which are often difficult to distinguish from investment funds for retail investors, but are a lot less regulated. He said: “This situation is not in the interest of investors, whom we seek to protect. A similar level of product information, at least at the point of sale, is necessary.”

The Alternative Investment Management Association's (AIMA) Executive Director Florence Lombard commented on the White Paper: "We are happy to see standardization of definitions for private placements but less so on the prospect of any new regulations. This is an on-going exercise and the Commission has promised further research on non-harmonised funds, including hedge funds and the need to develop a single private placement framework."   

Fidelity International Executive Director Gareth Adams told Easier Finance: "The publication of today’s White Paper is a welcome signal that the Commission has recognised the need to improve the efficiency of the current European investment funds framework. However, there is still a long way to go before European investors and the European fund industry will actually see any real improvement."