EUROPE: European Council approves UCITS IV Directive

Wednesday June 24 2009

The European Council of Ministers has adopted the UCITS IV directive which had been under consideration for a number of years.

This follows upon last week `s unilateral statement by Luxembourg warning that the the new Directive introduces the potential for legal and fiscal uncertainties for investors which are likely to considerably impair the brand image of the UCITS product worldwide and that the Management Company Passport risks undermining the quality of the UCITS product, particularly the high level of protection which this product offers retail investors.”

As per procedure the directive will enter into force on the 20th Day following its publication in the Official Journal. Publication on the official journal could take up to twelve weeks.

CESR is expected to issue a number of consultation papers over to the summer to provide guidance with regards to the implementation and application of a number of the UCITS IV provisions.

Click on the above link to download the adopted directive.

Related Links:

* Luxembourg-Unilateral Statement on UCITS IV Risks

* UCITS IV – CESR publishes responses on implementing measures

* European Parliament votes for UCITS IV