European Parliament Amends UCITS Directive
The Official Journal of the European Communities published the final text of amendments to the Undertakings for Collective Investment in Transferable Securities ("UCITS") Directive, the legislation which facilitates pan-European public offerings of investment funds within the member states of the European Union. First adopted in 1985, the UCITS Directive is intended to create a "European passport" whereby a fund organized in any member country in the European Union that meets certain uniform criteria can compete on an equal basis with funds created in other member countries. The amendments, known collectively as "UCITS III," expand the existing Directive in a number of significant ways. For example, the amendments change the list of authorized investments so as to permit funds of funds, derivative funds and money market funds to qualify as UCITS. UCITS III also introduces new requirements for companies that manage UCITS (including minimum
