[18316]
December 8, 2004
TO: INTERNATIONAL OPERATIONS ADVISORY COMMITTEE No. 37-04
RE: INSTITUTE COMMENT LETTER ON UCITS IMPLEMENTATION ISSUES
Attached is a letter to the Committee of European Securities Regulators (CESR) on issues
relating to the transitional provisions and implementation of the UCITS Directive. Generally,
the letter urges CESR to use its influence to prevent Member States from diverging from the
voluntary guidelines that are ultimately adopted. The letter states that it would be critical that
UCITS funds not be subject to conflicting requirements in different Member States if a pan-
European UCITS market is to be successful.
The letter also makes three specific comments. First, the letter recommends that CESR
require a product passport (but no management company passport) if a management company
only wishes to distribute UCITS funds managed by itself in a host Member State. Second, the
letter expresses concern with CESR’s view that open-ended investment companies may only
designate a management company in the same EU jurisdiction as the UCITS fund. In effect, this
interpretation would mean that a management company and its UCITS funds must be located
in the same Member State. Finally, the letter seeks clarification regarding the exact latest date
by which a UCITS I umbrella fund may launch UCITS I sub-funds and still benefit from the full
grandfathering period up to February 2007 before being required to convert to UCITS III.
Jennifer S. Choi
Associate Counsel
Attachment (in .pdf format)