EUROPE: European Commission publishes Feedback Statement on Green Paper

Monday February 13 2006

In July 2005, the European Commission published its Green Paper on the enhancement of the EU framework for investment funds. Today, the EU Commission has published its Feedback Statement which analyses the responses received on the questions raised in the Green Paper. The Feedback Statement can be found at the above link.

Amongst other things the respondents generally felt that:

*further progress was needed on the simplifying the fund passporting process

*that the simplified prospectus is failing to deliver its objectives

*significant changes in respect of distribution might not be working to the advantage of the end investor

*further action is needed in respect of the management company passport

*initiatives in the field of cross-border pooling and mergers were generally welcomed

*the industry should drive forward the standardisation of fund processing

*conditions not yet in place for action in respect of the depositary report.

The responses will now feed into the European Commission’s White Paper which is due to be published in Autum 2006.