Trade body ICI Global has told Brussels that current distribution rules for Ucits and regulated alternative investment funds are “cumbersome” and should be reformed.
Responding to EC consultation, ICI Global said European Union member states have different authorisation processes, marketing definitions, and administrative requirements for funds, potentially adding cost and complexity for firms, and discouraging cross-border distribution and investment. Moreover, national regulators often use varying terms to identify the same item across jurisdictions.
Dan Waters, managing director of ICI Global, said current Ucits authorisation and cross-border distribution processes “cry out” for reform, as they are “too bureaucratic, cumbersome, and costly for funds and investors”.
“A simpler, more efficient, and consistent approach could be a game-changer for the EU economy and its investors, encouraging more investment and more investor choice,” he added.
ICI Global said processes and terminology should be harmonised across the EU, and the body has recommended a single filing system for investor notifications and for documents such as Key Investor Information Documents.
A single set of communications content would offer fund investors numerous advantages and easier, more consistent information access, the group said, and suggested the EC could model such an approach from the Ucits management company register, which is already used by the European Securities and Markets Authority (Esma), to create a single filing hub.
Noting that harmonisation could take considerable time, ICI Global recommended Esma adopt interim guidelines that would serve until the Commission could act.
The Commission issued a consultation on harmonisation in June as part of an initiative to unify and stimulate European capital markets.
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