European Commission commits to simplifying EU legislation for UCITS

The publication of the EU "White Paper on Enhancing the Single Market Framework for Investment Funds" indicates a very strong and welcome commitment by the EU Commission to take concrete steps to improve the efficiency and cost-effectiveness of European investment funds.

The paper, which marks the end of two years of consultation on the way forward for Undertakings for Collective Investment in Transferable Securities (UCITS), responds very positively to industry calls to improve the single European market for funds, to the benefit of investors and managers of funds. IMA particularly welcomes the fact that the proposals mirror those described in its 2003 Heinemann Report.

Sheila Nicoll, Deputy Chief Executive of the IMA, commented: " We are very pleased that the Commission has understood the need to support the European fund industry as it restructures to meet new competitive challenges and the changing needs of European investors. It has clearly understood the role of investment fund managers in pension provision as well as the need to keep European-based funds in the global vanguard. There has been a great deal of consultation and discussion over the last few years. Now it is a question of making it happen."