Brussels, 20/01/2009 (Agence Europe) - At the request of France, the Ecofin Council tackled the question of protecting consumers that have invested in investment funds for which marketing is governed by the directive on UCITS (undertaking for collective investment in transferable securities) (EEC/85/611). “It is possible that there is a need for measures to complete provisions in force in order to ensure that the aims of the directive are reached”, said Commissioner Charlie McCreevy responsible for the internal market. He said his services would look into the matter, including with national regulators, and would then discuss what course of action should be taken.
The day before, after the Eurogroup meeting, Luxembourg Prime Minister Jean-Claude Juncker had given his assurance that there was “no difference between the French and Luxembourg legislation” on protecting investment in the UCITS fund. He gave his support to the efforts aimed at ensuring uniform interpretation of obligations incumbent upon UCITS fund depositaries, and said that the Commission had not to date launched any infringement proceedings on this question. According to the French authorities, there are differences in national interpretation concerning the role and liability of UCITS fund depositaries (see EUROPE 9818). French investors have entrusted sums of an accumulated value of over €1 billion to UCITS fund depositaries in Luxembourg. They deplore the fact that these depositaries, swindled by American financier Madoff, are not able or compelled to completely reimburse the sums invested. (M.B./transl.jl)