EUROPE: Management Company Passport – CESR publishes responses received

Wednesday August 27 2008

The Committee of European Securities Regulators (CESR) has today published the answers received to its consultation on the request for advice on the UCITS Management Company Passport (the Passport).

Readers may recall that the European Commission requested CESR’s advice on this issue when the Commission published its UCITS IV Proposals.

Parties such as the European Fund and Asset Management Association (EFAMA) and the Investment Management Association (IMA) have responded to the consultation. To view the responses of the interested parties, please click on the above link.A concern raised by EFAMA addresses the issue of administrative burden. EFAMA has acknowledged that the outcome of the consultation and the numerous responses received by different parties could lead to the development of complex procedures, which may outweigh or diminish the advantages that the Passport provides.IMA has also echoed this concern, advising against the introduction of dual control of the management company’s activities which, IMA advises would be too burdensome and will diminish cost benefits of the Passport. IMA advocates a clear division between the duties of the management company supervisor and the fund supervisor to in order for the Passport to be efficient and well functioning.

To view IMA’s press release, please click – http://www.investmentuk.org/press/2008/20080826.asp