Credit ratings agencies blamed for market losses

TIme's up for UCITS revision?

Efforts to revise the directive on undertakings for collective investments in transferable securities (UCITS) have met resistance because of political sensitivity in some member states about giving large fund management groups the freedom to operate throughout the EU. The key issue is the so-called company passport, which would enable firms to offer their products anywhere in the EU, without any obligation to maintain certain services in their home state. Ireland and Luxembourg have objected to changes which would deprive their financial services sectors of lucrative activity. Charlie McCreevy, the European commissioner for the internal market, has tried to neutralise the effect of divisions on the company passport by referring the issue to the Committee of European Securities Regulators. The committee is due to give its opinion on possible solutions in November. But the industry is warning that time is running out to agree the revision of UCITS before the end of the current European Parliament mandate next year.