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In its 2006 White Paper on enhancing the Single Market framework for investment firms, the Commission undertook to examine the possibility of establishing an effective management company passport as part of its package of targeted legislative amendments to the UCITS Directive.
A management company passport would allow a UCITS fund to be managed by a management company authorised and supervised in a Member State other than the UCITS home Member State.
On Wednesday 16 July 2008, the Commission adopted a proposal for a directive containing amendments to the UCITS Directive (85/611/EEC). This proposal does not include any provision in that respect. The reason for this is that the Commission still needs to determine how the current high level of investor protection provided by the UCITS framework can be maintained in the context of such cross-order management arrangements (see explanatory text of the Commission proposal).
Therefore, in parallel, the European Commission requested CESR to provide advice that will help the Commission to develop provisions permitting the introduction of a management company passport under conditions that are consistent with a high level of investor protection.
CESR invites all interested parties to submit their views on the call for evidence published today, and indicate what CESR should consider in its advice to the European Commission.
All contributions can be submitted online via CESR’s website under the heading Consultations at www.cesr.eu by 22 August 2008.
