European Regulators Issue Final Guidelines on UCITS Directive

Washington, DC, February 3, 2005 - The Committee of European Securities Regulators (CESR) has issued its final guidelines for implementing the pan-European UCITS Directive.

Background
UCITS funds - or Undertakings for Collective Investment in Transferable Securities - are European mutual funds that can be marketed in all EU countries. The UCITS Directive is an effort to provide a framework for cross-border sales of investment funds throughout the European Union. The Directive allows a fund to be sold throughout the EU subject to regulation by its home country regulator. The guidelines issued by CESR will help CESR member states implement the UCITS Directive. CESR members would adopt the guidelines voluntarily.

Funds domiciled in Europe - which include UCITS and non-UCITS funds targeting only investors in specific EU nations - represent approximately $4.6 trillion, or 33 percent of the total worldwide mutual fund market as of year-end 2003.

The final guidelines are consistent with CESR's proposals but provide a few additional clarifications in response to comments on the consultation paper, including those of the Institute. Among other things, the guidelines set forth deadlines for UCITS funds, in EU member states that choose to adopt the guidelines, to comply with the Directive. CESR also intends to work on simplifying the registration procedures for UCITS funds to provide convergence on registration procedures in different EU jurisdictions.

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