ZKA comments on Commission Green Paper on Investment Funds

15 November 2005

The German Zentraler Kredit Ausschuss (ZKA) issued its comments on the Commission Green Paper on Investment Funds stating that it does not see any need for the Commission to take action concerning new risks associated with managing and administering investment funds. ZKA is convinced that there is no need for further action at EU level to increase investor protection.

The ZKA also rejects the notion that customers are only able to invest in the “best” product in an open architecture and that there is thus a need for regulatory measures. The more funds or investment products distributors include in their portfolio the less knowledge they will have about each individual product. This highlights the advantage of the practice common in many European countries of limiting the range of product. Finally, any regulation for Hedge Funds should only take place at international level.

Document

© ZKA - Zentraler Kreditausschuss