Brussels, 14/02/2006 (Agence Europe) - On 13 February, the European Commission published an analysis of responses received as part of the consultation process launched by the July 2005 Green Paper on “enhancing EU framework for investment funds”. The responses showed strong support for improving implementation of the existing framework. Over 120 detailed responses were received from 22 countries, including 19 EU Member States. In the Autumn, the Commission will publish a White Paper on investment funds.
Respondents encouraged the Commission and the Committee of European Securities Regulators (CESR) to continue their efforts to improve implementation of the provisions of the existing Directive, particularly Directive 85/611/EEC. They stressed the need for greater harmonisation of the content and the format of the Simplified Prospectus, and put forward the idea of a European management company passport. A significant number of respondents considered that regulatory fragmentation was holding back the development of the alternative investment/hedge fund sector.
There was, however, a wide spread of opinion on whether the current approach to regulating investment funds was sustainable in the long-term. Responses revealed support for an eventual move towards principle-based regulation, counter-balanced by concerns that a fundamental overhaul of existing rules could give rise to unintended consequences and disruption. In a press release, Internal Market and Services Commissioner Charlie McCreevy said, “There was almost universal consensus that the current framework can be improved. The onus is now on us to build on this interest and come forward with the right proposals”.