Home Market & investments banking UCITS The UCITS directive covers the European passport for UCITS and for asset management companies  
 
 
 

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31 december 2009

The UCITS directive covers the European passport for UCITS and for asset management companies


The UCITS IV directive was published in the Official Journal of the European Union on 19 November 2009.

 

The European Commission undertook the revision of the existing text in the summer of 2008. The FBF took an active part in consultations about measures aimed at implementing the directive, launched by the CESR in February 2009. The new text includes the European passport for asset management companies. This was a demand of the French banking profession. The passport will allow asset management companies to expand their business from within a single country. It will thereby foster the development of a real European market for UCITS.


French banks favour the directive, which aims at facilitating cross-border distribution of UCITS thanks to a new electronic notification procedure between national regulators. The merger of harmonised investment funds is allowed, in single countries as well as across borders. Lastly, the directive simplifies the disclosure requirements for asset management companies in their dealings with prospective investors: the key information that must now be provided should facilitate comparisons between funds (through a KID, Key

information investor document).


The directive is to be transposed into national legislation by the various EU member states by 1 July 2011. The FBF is already taking an active part in work being done by the AMF, the French market regulator, to prepare the transposition in France. All UCITS combined, the French market was worth an estimated €1,245 billion in 2008, according to the French Asset Management Association (AFG).

 
 
 
 
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