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EU Permanent Representative Committee (COREPER II) on December 4 in Brussels has confirmed the Member States agreement on the Directive amending the current legislation on the harmonised functioning of collective investment funds and aiming at strengthening investors confidence.
The agreement on the Directive to undertakings for collective investment in transferable securities as regards depositary functions, remuneration policies and sanctions (UCITS V) enables the Council to start negotiations with European Parliament, with a view to have a final agreement on this directive by the end of current legislative cycle.
The UCITS legislation which is currently in force laid the foundations for the harmonised functioning of collective investment funds, which are widely used by retail investors, throughout Europe. Proposed amendments to the directive deal with the deficiencies of the regime, which were revealed by the developments of the markets. The amendments aim at defining which institutions can act as depositories, as well as their tasks and liabilities. The Proposal also reviews sanctioning regime and rules on remuneration of UCITS managers.
UCITS V aims at improving investors’ confidence, which had decreased during the financial crisis. Proposed new rules will help to ensure the safety of financial funds, increase investor protection and will fill the important missing part of the sounder financial markets regulation framework.
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