EC paves way for European fund market

Commission wants to allow more cross-border activity in order to increase the efficiency of the European asset management industry

Ucits rules should allow more cross-border activity to let the fund management industry in Europe evolve, the European Commission said in a recent document. In order to increase the efficiency of the European asset management industry the Commission believes clearer rules need to be set out regarding fund mergers while asset pooling from feeder vehicles into master funds should be allowed. It also feels management company passports need to be allowed so firms do not have to set up companies in states where it wants to market a fund. In addition, firms need to have clearer simplified prospe...