CESR position on Commission Expert Groups report

09 November 2006

CESR published its reaction to the Expert Groups on Market Efficiency and Alternative Investment Funds report and supports the Expert Group report that modifications to certain extent of the UCITS directive might be necessary.

CESR points out that there is no clear definition of hedge fund, and that the issue of what hedge fund remains open. Distinctions between alternative investments are blurring and some clarity about the target of any future action in this field would help in providing useful contributions. In particular, further economic analysis is necessary at least to identify the major categories of hedge funds.

However, CESR opposes the Groups findings that alternative investment funds should be able to be distributed to retail investors on a cross-border basis, as long as the sale takes place in accordance with the provisions of MiFID.

Document

© CESR - Committee of European Securities Regulators