ICI Comments on Possible Changes to European Securities Ownership Reporting Rules

Washington, DC, April 25, 2002 - The Institute recently urged the European Commission to assure that any changes to the rules for reporting securities ownership do not impose unnecessary burdens on institutional investors, such as mutual funds and pension funds and their investment managers that do not invest for control purposes.

In a comment letter, the Institute urges the European Commission, which is considering changing the threshold for reporting significant ownership securities, to draft the rules to balance the market's need to know about the accumulation of securities by those who may seek to influence control over an issuer with the goal of not imposing unnecessary burdens on institutional investors.

The Institute also makes several specific recommendations if the European Commission decides to lower the reporting threshold from the current 10 percent level.