Moving towards a harmonized European market

By John M. Baker, Esq.

The European Commission on May 30, 2000, approved two amendments to the UCITS Directive.

UCITS are Undertakings for Collective Investments in Transferable Securities; they held assets of more than 3 trillion euros at the end of 1999, the equivalent of more than 35% of European Union gross domestic product.

The first amendment focuses essentially on the “product” (the investment fund) and would extend the range of financial assets in which collective investment undertakings may invest, while the second amendment focuses on the financial intermediary which may manage UCITS (the management company) and proposes coordinated rules that would allow a “European passport” regime.

The proposed amendments now will be discussed by the Council of Ministers and sent to the European Parliament for a second reading. The proposals form part of the Financial Services Action Plan, which aims to build a truly harmonized single European financial market by 2005.

For more information and a link to the proposals, see the ICI’s site at

Copyright 2000, John M. Baker, Esq., Stradley, Ronon, Stevens & Young, LLP, 1220 19th Street, N.W., Suite 700, Washington, DC 20036 – (202) 822-9611- Fax (202) 822-0140 This article was originally posted to the FundLaw List, To subscribe to FundLaw, send a blank e-mail to

Nothing herein is intended as legal or financial advice. The law is different in different jurisdictions, and the facts of a particular matter can change the application of the law. Please consult an attorney or your financial advisor before acting upon the information contained in this article.

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