View more on these topics

European Commission planning Ucits V to apply ‘Madoff lessons’

The European Commission is to begin working next year on a Ucits directive aimed at increasing investor protection and creating a level playing field for Ucits investors in Europe.

Michel Barnier, the commissioner for internal market and services, has designated Ucits V as a priority for 2011, “taking on the lessons learned from the Madoff fraud”.

Ucits V will not compromise the Ucits IV directive, which aims to simplify the European fund industry, cut costs and encourage cross-border mergers. This is expected to be implemented next year.

IMA director of international relations Jarkko Syyrilä says the Ucits V directive is expected to deal mainly with depositary liability.

There is concern in the industry that the proposed Alternative Investment Funds directive is a serious threat to the Ucits directive in its proposal to impose a “strict” liability on Ucits funds’ depositaries.

Syyrilä says: “We all agree clarifications to depositaries’ tasks are welcome, but imposing a strict liability on Ucits would be the end of the road for many emerging market Ucits and would deny European retail investors the opportunity to invest in the world’s fastest-growing economies in a risk-diversified way, through investment funds.”

Martin Currie head of product development Toby Hogbin says: “Ucits V is an inevitable consequence of the current global appetite for regulation.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm