31 January 2006

IMA response to CESR consultation on guidelines on notification of UCITS

The Investment Management Association (IMA) responded to CESR on the issue of simplifying the process for notifying authorities where a fund is to be marketed cross-border. IMA considers that removing existing complexity and bureaucracy is vital to securing an efficient, cost-effective single market in Europe. The Association, therefore, is disappointed that CESR has not adopted a bold enough approach in its consultation, leaving too much room for different practices across Member States.

Also, the document seems to take as its starting point the most constrained jurisdiction, and an apparent assumption that national law cannot or should not be changed. Under these proposals a large number of Member State options would remain which are precisely what make the existing requirements so complex and costly. IMA therefore calls to start with an articulation of the desired outcome, accompanied by indicating the existing constraints which exist to achieve the desired results.

The Association recognises, however, that a lot can be achieved through efficiency of processes and co-ordination among regulators and in the same way as it did for eligible assets, IMA welcomes the intention of CESR to publish a second consultation on notification.

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