07 October 2008

JURI meeting 7 October

JURI Committee voted on the Kauppi report on the publication and translation obligations of certain types of companies. It also held a first exchange of views on the draft Opinion on UCITS, prepared by Jean-Paul Gauzès.

JURI Committee voted on the Kauppi report on the publication and translation obligations of certain types of companies. It also held a first exchange of views on the draft Opinion on UCITS, prepared by Jean-Paul Gauzès.

 

Publication and translation obligations of certain types of companies

JURI Committee adopted the report of Piia-Noora Kauppi on the publication and translation obligations of certain types of companies. The aim of the proposal is to diminish administrative burden and lower costs for companies by reducing the costs for translations and certification of business - related documents to the minimum and by creating electronic company registers in Member States. The electronic registers would contain all information that companies are required to disclose in Member States' registers.

 

“We have now found a sensitive balance, which will simplify the registration and translation requirements across the EU, make it easier for companies to operate in several Member States and lower their administrative costs", said Piia-Noora Kauppi after the vote.

 

According to the adopted text, the Member States would still be able to require additional forms of publication to be used, but they would all be covered by a single fee charged for the entry in the electronic register.

 

The report as adopted will be available soon.

 

Exchange of views on UCITS

Jean-Paul Gauzes issued his opinion on the UCITS directive and calls for a full Management Company Passport for UCITS as long as the supervision is efficient and the investor is well protected. Therefore, consistency is needed between the domicile of the fund, the law applicable and the competent authorities responsible for authorizing and enforcing UCITS.

 

The localisation of the management company’s registered office or activities should not be a condition for granting authorization. Also, the competent authority of the management company should make sure that the management company is in a position to comply with the rules applicable to all UCITS it manages. Finally, the rapporteur suggests that the depositary shall always be located in the same Member State as the fund.

 

Furthermore, domestic mergers which are purely national should be excluded from the scope of the directive. Mr Gauzes also suggests that member states shall not impose more stringent rules for cross border mergers than for domestic mergers.

 

With regard to the master-feeder structures a maximal harmonisation should be seeked, in order to ensure a level playing field throughout the EU. Thus maximum harmonization should be applied to any agreement between a master and a feeder fund.

 

Draft opinion attached below.