IMA concerned about Commission proposal for UCITS company passport

19 June 2007

Responding to the Commission's Exposure Draft on removing the major barriers to pan-European investment fund business, IMA believes that the proposal to offer a 'partial passport' for the cross-border operation of investment funds is flawed. IMA urges the Commission to provide a full passport for the UCITS management company. It notes that the Commission proposal for a 'partial passport', under which the functions of calculating the net asset value of the fund and maintaining unit-holder registers would have to take place in the Member State in which the fund is domiciled, would impose unnecessary artificial restraints.

'It is very disappointing that an otherwise excellent piece of work falls down on one important issue “, Sheila Nicoll, Deputy Chief Executive of the IMA, commented. “A number of UK funds are already administered in another EU Member State so this would be a significant backward step from the present position.'

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