05 May 2006

CESR second consultation on simplification of cross-border notification of UCITS

CESR launched a second consultation paper on its draft guidelines regarding the cross-border notification procedure of UCITS funds. The revised consultation paper addresses several of the requests put forward by markets participants for greater clarity on the specific tasks of the host country competent authorities regarding the marketing arrangements and advertising of passported funds.

As a consequence of the commitment of CESR Members to implement the guidelines it may be necessary for some Member States to amend national laws and regulations. Where such a procedure is necessary, a transitional period may be required.

Following proposals have been developed to address the concerns raised in the first consultation:

CESR agreed that 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.

CESR should clarify when the two month period would start as regards receipt of the notification. If the notification is incomplete, the competent host State authority shall inform the UCITS.

CESR agreed to rely on self-certification of copies of original attestations by the notifying UCITS. The original attestation will be issued in English.

For the treatment of umbrella funds, CESR agreed that the necessary time for the host authority to check should be significantly less than the two-month period.

CESR intends to shall finalise its guidelines regarding the cross-border notification procedure of UCITS funds by July 2006.

Deadline for comments is 1 June 2006. A public hearing will be held in Paris in May

Press release
Consultation paper

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