Annexes to COM(2006)686 - White paper white paper on enhancing the single market framework for investment funds - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2006)686 - White paper white paper on enhancing the single market framework for investment funds. |
|---|---|
| document | COM(2006)686  |
| date | November 15, 2006 |
A. Proposal to modify Directive 85/611:
The Commission will propose targeted adjustments and additions to: 1). simplify existing passporting mechanisms and expand the freedoms available to UCITS funds and their managers; 2). underpin an effective and relevant simplified Prospectus; 3). enhance supervisory cooperation. Proposals for legislative amendments will be tabled as a single package in autumn 2007. As part of its commitment to transparency, the Commission services will undertake open consultation on envisaged proposals in spring 2007. This consultation will also provide for scrutiny of the envisaged measure from a cost-effectiveness perspective. Amended or new provisions of the Directive will provide for the use of detailed implementing legislation to define the manner in which the rights or obligations should be exercised. This will allow for greater legal certainty and uniformity in the implementation of rights and obligations flowing from the Directive and more flexible adaptation to changing market circumstance and investor needs. Expected timing: The Commission will publish its proposal in autumn 2007.
B. Non-legislative actions to support improvements in the UCITS framework:
- Communication, recalling relevant ECJ case-law, to clarify that national capital gains tax treatment of mergers of locally domiciled funds should be extended to mergers involving funds from another Member State. Expected timing: early 2008
- Revision of Commission Recommendation on Simplified Prospectus, based on guidance from CESR and consultation and consumer testing. This work will be undertaken in parallel to modification of the relevant provisions of the Directive. Expected timing for launch of the work: early 2007: target completion date, mid-2008.
- Vade-mecum of Commission services on application on relevant provisions of MiFID to collective investments/UCITS. Expected timing: summer 2007.
- Communication/Recommendation on delegation of custodial functions by depositaries and designation of EU bank branches as depositary: expected timing: early 2008.
C. Non-harmonised investment funds:
- Review of national rules governing placement of financial instruments including certain funds with qualified investors and first assessment of options for building a common European private placement regime: Expected timing: autumn 2007.
- New research on investment policies for harmonised and non-harmonised funds, and related risk and performance: publication of results – end 2007;
- Creation of an expert group on open-ended real estate funds: publication of report – autumn 2007;
- Report of Commission to Council and Parliament assessing the need for and possible options for developing the single market framework for certain retail-oriented non-harmonised funds: mid-2008.
[1] EFAMA Fact Book, 2006.
[2] Directive 85/611/EEC of Council as amended by Directives 2001/107/EC and 2001/108/EC of the European Parliament and Council.
[3] CRA (2006).
[4] COM(2005) 314 , final, 14.07.2005.
[5] Reports of the expert group on investment fund market efficiency and the expert group on alternative investments (hedge funds and private equity). Reports and conclusions of an open hearing on these reports are available at http://ec.europa.eu./internal market/securities/ucits/.
[6] Committee of European Securities Regulators
[7] Most UCITS do not qualify for the "Tax merger Directive" (Council Directive 90/434/EEC)
[8] Asset pooling refers to the aggregation of assets of different investment funds with a view to co-managing those assets as a single pool – thereby reaping scale, liquidity and other trading benefits. Pooling can take the form of 'entity pooling'. The assets of participating funds are aggregated in a separate legal entity. Master-feeder structures are a form of entity pooling in which the feeder funds transfer all assets received to the master fund. Virtual pooling uses information technology to aggregate the assets of participating funds as if there were an underlying pool, but without constituting the pool as a legal entity.
[9] Markets in Financial Instruments Directive 2004/39/EC of 21 April 2004
[10] Commission Recommendation 2004/384/EC of 27 April 2004 on some contents of the simplified prospectus as provided for in Schedule C of Annex I to Council Directive 85/611/EEC