Definition of UCITS Fund Assets to Be Examined by European Regulators

Washington, DC, November 4, 2004 - The Committee of European Securities Regulators (CESR) is seeking industry input in connection with its efforts to clarify the definitions of eligible assets for UCITS funds.

Background
Funds offered to European investors represent approximately $4.6 trillion, or 33 percent of the total worldwide mutual fund market as of year-end 2003. UCITS funds are European mutual funds that can be marketed in all EU countries.

The European Commission intends to clarify some of the definitions regarding eligible assets for investment by UCITS funds and has formally requested advice from CESR on several provisions, including:

• the definition of transferable securities;
• the definition of money market instruments;
• other collective investment undertakings;
• financial derivative instruments; and
• index replicating UCITS.

CESR’s request for comment states that the EU Commission has asked for specific advice on these provisions and raises some of the significant issues to be considered for each piece of advice but does not discuss CESR’s views on these issues.

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