19 May 2005

Speech McCreevy: European Fund Management – Adapting to change

In his keynote speech at the Annual Global Funds Conference in Dublin, Commissioner McCreevy highlighted the key themes that are currently on policy makers’ watch lists in the light of the structural changes seen in the industry in recent years and outlined the issues that will be among the topics of the forthcoming Green Paper in July. “We have decided to highlight asset management as one of our post FSAP strategic priorities for the coming years”, the Commissioner said. “We start by looking at the functioning of the existing legislation.”

“The Commissions distinguishes between short term issues using existing European tools, and longer term structural issues which can only be resolved by making changes to the legislation, or by proposing a new asset management Directive.

“On short term issues, we need to prioritize our work, propose options and agree on the right initiatives. On long term challenges and more far reaching issues, we need to foster a debate. Hence we will be publishing a Green paper in early July.

“In the medium term, and by that I mean in the coming 2 years, we believe some answers to the current challenges can be found in the existing rules and should not require new framework legislation.

“As to longer term challenges, I am anxious for a debate on the adequacy of the framework to deal with current structural changes. We need to explore how you can be given better tools to help you restructure your businesses.

“As to non harmonised funds such as hedge funds, a common pan-European approach to private placement might be the route we decide upon following consultation. These issues will be among the topics of the forthcoming Green Paper. It will be important that you do so if you want a modern and comprehensive framework for the industry by 2009-2010 and beyond.

Full speech

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