Italy Takes Steps to Implement UCITS Directive, June 2004

Washington, DC, June 22, 2004 - The chief Italian securities regulator, CONSOB, has proposed rules that would implement amendments to the UCITS Directive in Italy.

Background
UCITS funds are European mutual funds that can be marketed in all EU countries. The UCITS Directive provides the framework for cross-border sales of investment funds in the European Union. The Directive allows a fund that qualifies under the Directive to be sold throughout the EU subject to regulation by its home country regulator.

Europe represents approximately $4.6 trillion, or 33 percent of the total worldwide mutual fund assets as of year-end 2003. Italy, with fund assets of $4.8 billion, is the third largest mutual fund market in Europe.

The rules proposed by CONSOB would provide for the use of simplified prospectuses, eliminate a supplementary document that is required for the marketing of foreign UCITS funds (documento integrativo), impose new marketing requirements for foreign UCITS funds, and describe the treatment of new "sub-funds" of grandfathered funds.

Among other things, non-Italian UCITS funds will be required to designate a "prime distributor," which will have the responsibility to provide certain information in an appendix to the application form. The appendix would have to include information that previously had to be included in the documento integrativo.

ICI Position
The Institute has long supported harmonization among EU member states on the rules and regulations governing the UCITS market and has worked to lower the barriers that prevent U.S. asset management firms from marketing their services more widely.

EU Commission Examines Regulation of Depositaries in Member States, April 2004
Task Force Reports on Use of Derivatives by UCITS Funds, March 2003
Proposed UCITS Directive Nears Adoption, March 2003
Luxembourg Will Implement Amended UCITS Directive, January 2003
The Regulation of Operational Risk in Investment Management Companies, Perspective, September 2002
Amended UCITS Directive Becomes Effective, March 2002
Implementation Date of EU Directive May Vary Among Member States, February 2002
European Parliament Proposes Amendments To UCITS Directive, October 2001
EC National Ambassadors Agree on UCITS II Proposal, March 2001
EU Council Agrees on Amendment to UCITS Directive, January 2001
Institute Comments on UCITS Regulation to European Committee, September 2000
European Commission Approves Amendments to UCITS Directive, June 2000
European Parliament Committee Proposes New Amendments to UCITS Directive, February 2000
EU Proposals to Amend the UCITS Directive and Regulate Management Companies Under a New Directive, September 1998