August 4, 1994
TO: INTERNATIONAL COMMITTEE NO. 14-94
RE: PROPOSED AMENDMENTS TO THE UCITS DIRECTIVE
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Attached for your information is a copy of the most recent
proposal to amend the UCITS Directive, adopted by the European
Commission on July 22, 1994. If the Council of Ministers adopts
the proposal as a common position, it will be voted on by the
European Parliament. The changes would be scheduled to take
effect in July 1996.
The proposal would expand the UCITS Directive to cover money
market funds and master/feeder funds, where both the master and
all feeder funds consist of UCITS. The proposal also would amend
the investment limits imposed under the Directive. Currently,
the Directive provides that a fund manager cannot acquire, with
respect to all the UCITS funds it manages, voting stock in an
amount where it would be possible for the manager to exercise a
significant influence over an issuer. This proposal would amend
the Directive by adding new provisions to the effect that holding
10 percent of an issuer's securities would create a rebuttable
presumption of the potential for significant influence.
We will keep you informed of developments.
Mary S. Podesta
Associate Counsel - International
Attachment