| Author (Corporate) | European Commission: Press and Communication Service |
|---|---|
| Series Title | Press Release |
| Series Details | IP/00/567 (31.5.00) |
| Publication Date | 31/05/2000 |
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The European Commission has approved two amended proposals designed to update legislation on harmonised investment funds (UCITS). The aim is to broaden the scope of the allowable investments and update how they can be managed to take account of the rapidly changing financial environment. Collective investment undertakings (such as unit trusts and SICAVs), where investors' money is placed by a qualified fund manager in a diverse range of assets according to defined risk criteria, enable private investors with limited resources to invest in financial markets. They constitute a major market sector, with assets of more than €3 trillion at the end of 1999. The proposals form part of the Financial Services Action Plan which aims to build a truly harmonised single European financial market by 2005 (see IP/00/556) and was strongly endorsed at the Lisbon European Council The Commission's amended proposals take into account the European Parliament's February 2000 Opinion. The first proposal removes barriers to cross-border marketing of units of collective investment by widening assets in which they can invest. The second proposal gives management companies a 'European passport' to operate throughout the Union and widens the activities which they are allowed to undertake. It also introduces the concept of a simplified prospectus which will strengthen investor protection by providing for more accessible and comprehensive information |
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| Source Link | http://ec.europa.eu/comm/internal_market/en/finances/mobil/2k-567.htm |
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| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe |
