Brussels, 15/10/2007 (Agence Europe) - On Monday 15 October, the European Commission published the results of a public consultation exercise held in April this year on cross-border private investments (see EUROPE 9411), which enable experienced investors to be sold own private investments without application of the Prospectus Directive rule (2003/71/EC) on protecting investments in the retail sector. 'Member States differ widely in the extent to which they allow financial institutions and qualified investors to transact privately' and 'legal uncertainty prevails', particularly for non-harmonised open-ended and speculative investment funds, thereby leading to increased advisory and legal costs.
The Commission says 'a slight majority (of respondents, Ed.) favoured a legally secure and binding solution based on light-tough legislative intervention or more far-reaching harmonisation,' but respondents held widely divergent views on how to achieve this. Some 'suggested that a staged approach might be suitable. A first set of measures would have a relatively narrow scope. This could subsequently be broadened if successful.' By the spring of next year, the Commission will assess the need for a special EU system. (MB)