ACTION REQUESTED
[15569]
January 22, 2003
TO: INTERNATIONAL COMMITTEE No. 4-03
RE: UK ISSUES CONSULTATION PAPER ON UCITS MANAGEMENT DIRECTIVE
Recently, the UK Financial Services Authority (FSA) jointly with H.M. Treasury issued a
consultation paper on the UCITS Management Directive. The FSA’s summary of the consultation
paper is attached. The complete consultation paper may be obtained through the FSA’s website at,
http://www.fsa.gov.uk/pubs/cp/cp163.pdf.
The proposed Management Directive would: (1) introduce a new passport, allowing a UCITS
management company to carry out cross-border investment services; (2) impose new financial
resource requirements and conduct of business rules on the UCITS management company; and (3)
provide for a simplified prospectus to be used as a marketing document throughout the European
Economic Area.
According to the FSA, the minimum standards of financial resources and conduct of business
provisions that would be imposed by the proposed Management Directive are already met by the
FSA’s rules. The main changes being proposed by the consultation paper would be to permit a
UCITS management company to provide services that are being provided by firms authorized under
the Investment Services Directive.
In describing the new requirements on management companies, the FSA notes that the
Authorized Corporate Director (ACD) of a UK open-end investment company would be treated as a
management company for the first time because of the definition of “management company” in the
amended UCITS Directive. The FSA’s consultation paper contemplates that some ACDs may have to
restructure their operations because they will no longer be able to hold an Investment Services
Directive passport once they are defined as UCITS management companies.
The consultation period for the paper ends on April 1, 2003. The Institute will be considering
whether to submit comments on the consultation paper. If you have any particular concerns about
the FSA’s proposals, please contact me at (202) 326-5810 or at jchoi@ici.org no later than March 1,
2003.
Jennifer S. Choi
Associate Counsel
Attachment (in .pdf format)