Brussels, 03/02/2014 (Agence Europe) - Representatives of the European Parliament and the Greek Presidency may reach final agreement in principle on Tuesday evening in the talks revising the rules for UCITS investment funds (see EUROPE 11000).
The issues still under discussion include re-use of assets deposited with a bank. The financial industry is highly critical of the virtual ban that is planned on banks not re-using the deposited assets. The banks say that the option of re-using the assets for the bank's own capital as collateral for a loan would be restrictive.
New measures will be introduced to boost transparency on pay and bonus policies that impact on funds' risk profiles. Bonuses will not be limited in the way bank bonuses have been, although EP rapporteur Sven Giegold (Greens/EFA, Germany) did consider this at one point. The industry opposes any rules that directly impact on managers in non-EU countries to whom the management of sections of UCITS has been delegated. (MB/transl.fl)