April 14, 1992
TO: BOARD OF GOVERNORS NO. 23-92
INTERNATIONAL COMMITTEE NO. 9-92
RE: EUROPEAN COMMISSION'S REPORT ON U.S. TRADE BARRIERS
INCLUDES SECTION 7(d)
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The European Commission recently published its eighth
report on the barriers faced by Europeans seeking to do business
in the United States. The EC states that the reports are
compiled to "... redress the impression given by the U.S.
National Trade Estimate reports that trade barriers are primarily
a problem encountered by American business abroad, while the U.S.
market is essentially open. In reality, Europeans still
encounter many serious problems in doing business in the American
market."
The ninety-six page report describes a wide range of trade
and investment barriers, and includes a chapter on barriers
affecting the financial services industry. In the attached
portion of the report, section 7(d) of the Investment Company Act
appears as the second item on the EC's list of restrictions on
the provision of securities and investment services. Although
the report acknowledges that foreign money mangers are able to
form "mirror" funds in the U.S., it states that "[f]oreign money
managers are reluctant to incur the additional costs necessary to
do this."
We will keep you informed of developments.
Angela C. Goelzer
Assistant Counsel -International
Attachment