Investment Management
Lamberto CARDIA

Lamberto CARDIA, Chairman of the Italian Commissione nazionale per le società e la Borsa (CONSOB)

Patrice DEBONO

The UCITS Contact Committee established by the European Commission on the basis of Article 53 of the UCITS Directive 85/611/EC has transfered its responsibilities to the European Securities Committee and to CESR. This follows the final report of the Economic and Financial Committee (EFC), endorsed by the Ecofin Council on 3 December 2002, and a formal Commission proposal on the extension of the Lamfalussy and subsequent arrangements to other financial services sectors.

The decisions establishing CESR and the ESC was therefore amended to reflect the extension of their respective competences to encompass the Investment Management sector and to re-allocate the existing powers of the UCITS Contact Committee to the ESC and CESR. These amendments entered into force at the same time as the amended Directive.

CESR attended the meetings of the UCITS Contact Committee as an observer. In order to pave the way for the legal changes which will formalize this transition (described above), CESR considered it appropriate to start working in the area of UCITS and asset management, in order to provide a coherent response to regulation and supervision across Europe, including providing input to the UCITS Contact Committee.

CESR published a consultation paper (CESR Ref 03-441), following a discussion during an ad-hoc meeting of CESR experts on UCITS and asset management and taking into consideration the list of issues presented by representatives of the EU industry to CESR, which was discussed during an open hearing on 20 November 2003 in Paris. CESR set out in this consultation paper how it intends to develop its new role in the regulation of UCITS and asset management activities. CESR identified in the consultation paper four general principles in this context:

- Any future work done by CESR regarding UCITS would have to be conducted in full coherence with the EU institutional framework;
- CESR should take in a global vision of the so-called “buy side”, and not limit its activities to investment funds;
- CESR should not start to work on matters where the UCITS Contact Committee is about to finish its work (e.g. simplified prospectus, derivatives);
- Account should be taken of the outcome of work already done by International Organisation of Securities Commission (IOSCO).

Furthermore, CESR proposed four areas of possible intervention and priority work streams:
- areas where supervisory convergence should be achieved;
- areas where input to ensure the harmonized implementation of the UCITS Directive could be provided to the UCITS Contact Committee, ideally on its request;
- areas not harmonised at EU level but where a common approach by regulators is necessary; and
- areas where consistency with other EU Directives are needed.

CESR will considered further its work programme in the light of the responses received to the Consultation. The responses to this consultation are available on the website under Consultations/Past consultations.

CESR has set up a Consultative Working Group of market participants in this sector, to provide technical expertise to the Group at an early stage. The Consultative Working Group will also provide advice on the proposed priorities for CESR’s work in this area.

31 Oct. 2008
Press release - CESR delivers its response to the European Commission’s request for assistance on the UCITS management company passport
31 Oct. 2008
Final advice - CESR’s advice to the European Commission on the UCITS Management Company Passport
31 Oct. 2008
Letter to the European Commission - CESR’s advice on the UCITS Management Company Passport
02 Oct. 2008
CESR's guidelines concerning eligible assets for investment by UCITS
02 Oct. 2008
Letter from the European Commission - Physical short selling in the context of the UCITS Directive
[EC 11/04/08]