Nouveau cadre pour les fonds d'investissements[en] 

According to the White Paper on investment funds cross border fund sales represented 66% of total net industry inflows in 2005. Also investment funds are becoming more important as means to provide a prosperous retirement. Therefore, the new framework is directed at amending the UCITS directive.

Making the industry fit for today’s challenges and avoiding high costs and missed investment opportunities are the main targets of the Commission’s White Paper on presented on 16 November 2007.

Internal Market Commissioner Charlie McCreevy said: “The growth of the European investment fund industry has been spectacular. But it still has massive untapped potential. These changes will unlock this potential by creating a barrier-free market for investment funds in the EU – meaning more choice and lower costs for investors.”

The new framework is not, however, directed at hedge funds. The Commission’s head of asset management unit, Niall Bohan, said that these were sufficiently regulated by national authorities up to date. The Commission argues that further regulation could stifle further development of the hedge fund sector.

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."