10 October 2001

EP Committee adopted Proposal on UCITS Directive (2nd reading)

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The Committee adopted the report by Olle SCHMIDT (ELDR, S) approving the Council’s common position under the codecision procedure (2nd reading), subject to just one amendment aimed at aligning the review period for capital requirement with the general review of the functioning of the Directive (three years).

The Rapporteur noted that the compromise reached in Council on the contentious issue of capital requirement broadly reflected Parliament’s views expressed at first reading. Furthermore, since Council’s compromise was only reached through a qualified majority, the Committee decided not to tamper with substantive elements of the compromise and risk delaying or jeopardising the legislation. The amendment also provided for the inclusion of a ”grandfathering” clause to grant existing UCITS investments that would have difficulty in complying with the new legislation an exemption from the new rules for five years.

The draft recommendation (codecision procedure, second reading) will be considered at the October II Strasbourg plenary session.

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