EFAMA hails the European Parliament’s vote on UCITS IV today as a new milestone in the creation of an effective single market for investment funds. The provisions in the directive are designed to enhance the industry’s efficiency by the introduction of a shorter notification procedure, new rules on mergers and masterfeeder funds and the recent inclusion of the Management Company Passport. The new concept of Key Investor Information will provide a further boost to an already high level of investor protection.
The plenary vote is the penultimate step in the adoption process of the directive. Member States are expected to give the green light in March. The directive could then be implemented into national law by July 2011.
Warmly responding to today’s vote, Mathias Bauer, President of EFAMA, said:
“Efficiency and confidence are crucial if the investment fund industry is to remain competitive, in particular under the current difficult market circumstances. UCITS IV will enable asset managers to deliver these efficiency gains, increase confidence in the existing UCITS framework and help promote the UCITS brand even more. We particularly welcome the shorter notification procedure, which will reduce time to market for crossborder fund distribution. The Key Investor Information will give investors a much needed overview of the essential elements of a fund in a language that is both clear and easy to understand.”
Peter De Proft, Director General of EFAMA, added:
“Less than six months ago, it seemed impossible that the management company passport would see the light, but with today’s vote it will soon become a reality. We are confident that the new regulatory framework can be successfully implemented to provide the organizational flexibility needed by the industry whilst maintaining UCITS’ strong supervision model. Together with the new arrangements for supervisory cooperation, mergers and master-feeder structures as well as clear provisions on Key Investor Information, Parliament has given a strong and positive signal to the fund industry and all financial markets.”