EUROPE: CESR launches second consultation on UCITS cross-border notification procedures

Friday May 5 2006

CESR has launched a second consultation on the guidelines for supervisors regarding the notification procedure according to Section VIII of UCITS. Responses must be received before 1 June 2006 and CESR expects to finalise its guidelines regarding the cross-border notification procedure of UCITS funds by July 2006. The CESR consultation details can be found at the above link. In summary, the revised consultation addresses the following points:

*Language regime of the notification letter – CESR has agreed that the UCITS can submit the notification letter to the host authority in a language common in the sphere of finance, where this is not contrary to the domestic legislation or regulations.

*Checking completeness of the notification letter – the host member state has a two month period from receipt of the notification. There was concern about when this period should commence in the case of incomplete / incorrect notifications.

CESR has clarified that the host state should inform the UCITS about the incompleteness etc as soon as possible and in any case within one month of receipt of the incomplete notification.

*Certification of documents – CESR has agreed to rely on self-certification by the UCITS of the documents related to the notification. This is a departure from the requirement that the certification come from the host state authority. The original attestation will be issued in English.

*Treatment of umbrella funds – CESR has agreed that the period for the host authority to review the notification should be significantly less than two months in the case of new sub-funds being added to umbrella funds where the marketing arrangements are already familiar to the host country competent authority.