Strasbourg, 31/10/2001 (Agence Europe) - The Parliament approved at second reading the Council common position on Undertakings for Collective Investment in Transferable Securities (UCITS), with the adoption of the report by Olle Schmidt (ELDR, S), during its last plenary session. In order not to endanger the agreement reached with difficulty by Council majority, the EP only adopted one amendment which provides for review of the directive after three years. Commissioner Frits Bolkestein pointed out that he could accept this amendment. The Council had already taken on board a large part of the amendments from the EP's first reading. Updating Directive 85/611, the new text mainly aims to enlarge the range of assets provided by an UCITS, over and beyond shares and securities, while improving consumer protection. It will create a "European passport" allowing investment bodies to exercise throughout the EU. The main stumbling block during the discussions concerned the minimum capitalisation of companies and prudential rules. It is one of the priorities of the action plans for financial services and investment capital (see yesterday's EUROPE, p.16).