EC Explores Framework For Investment Funds In EU

by Ulrika Lomas, for LawAndTax-News.com, Brussels

01 February 2006

The European Commission has appointed the members of two expert groups that will look at how the EU framework for investment funds could be improved.

The groups are the result of proposals in the Commission Green Paper on investment funds, published in July 2005. European trade associations were then asked by the EC to nominate candidates for the discussion panels in December 2005.

"The Green Paper launched a very productive debate on future priorities for investment funds. Now is the time for action," commented Internal Market and Services Commissioner Charlie McCreevy.

The first expert group will focus on market efficiency. It will provide commercial and technical perspective on a range of issues relating to the functioning of the single market framework for retail investment funds (UCITS). It will also analyse a number of potential new single market freedoms in which many market participants have expressed an interest, such as authorisation/notification, management company passport, fund mergers, and pooling.

The second expert group will focus on alternative investment funds. It will analyse the current organisation of the alternative investments business and examine whether operators in these asset classes are confronted with significant difficulties in organising their activities in the European marketplace.

"The expert group on market efficiency will help to pave the way for sensible, cost-effective responses to some of the main obstacles to an efficient and competitive single market for investment funds, while the group on alternative investments will give us the chance to hear from this fast-growing business on their ambitions in the European context," Mr McCreevy added.

The groups will meet on several occasions until June 2006, when they will produce reports on their findings, which will be discussed with regulatory bodies and other stakeholders.

The group's findings will be included in the Commission's White Paper on investment funds and related impact assessment work, scheduled for publication in October 2006.

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