Tag: Ucits

The European Commission said it will open an investigation into how member states have applied EU rules regarding so-called UCITS investment funds, after France complained about loss of deposits in Luxembourg following the Madoff scandal.

Despite long-standing opposition from the European Commission, EU finance ministers yesterday (2 December) backed the introduction of a so-called 'passport' for investment fund managers, aimed at cutting red tape and improving a funds market worth up to €7,000 billion.

The Commission will today (16 July) present proposals to amend EU rules on investment funds but will rule out the introduction of a 'European financial passport' for company managers, aimed at allowing them to sell funds throughout the EU regardless of their country of establishment, EurActiv has learned.

The European Commission has postponed a review of its rules on European investment funds, originally forecast for the end of April. No clear new deadlines have been set.

European harmonised funds (UCITS) are increasingly investing in derivatives, but this has so far not generated a higher level of risk in comparison with other funds, according to a survey published by the European Commission.

The Commission seeks to modernise the 5.5 trillion euro strong market for investment funds by improving transparency for consumers and easing costs for the industry, but sees no need for action on hedge funds.

The Commission is wrestling with investment funds – how to promote them, while leaving flexibility for market developments, while protecting investors. Particularly controversial are 'hedge funds', which some regard as the future of investment profitability and some as dangerously unstable. Three recent reports have highlighted the issues.