In a first step the Commission issued legally binding guidance to member states to include new financial instruments in the current scheme for investment funds. In a second step, it provided guidance on how national authorities should scrutinise the handling of investment funds coming from other EU member states.
The funds concerned, also known as UCITS (undertakings for collective investment in transferable securities), represent the most common types of product, accounting for 70% of investments and make up for €5.5 trillion of assets throughout the EU.
Investment funds are all those moneys put by ordinary householders into professionally managed investment portfolios.
"This is another important step towards delivering an efficient single market for investment funds," Internal Market Commissioner Charlie McCreevy said. "We want to put a stop to the administrative barriers that prevent investors from taking advantage of funds in other member states."
EU member states are to translate the measures into national laws within the next 12 months.
