Whether or not proposals to extend Europe's Ucits legislation ever see the light of day is a matter o...
This latest proposals contains some forward thinking ideas such as increasing the flexibility of fund management groups by passporting managers, not just products; a new pan-European set of rules for prospectuses; plus a proposal to centralise the way countries deal with companies deal with the delegation of management tasks in different countries. All of these proposals cut through the red tape binding many investment groups selling cross-border investment products.
But it is now over 10 years since the first Ucits legislation was passed and several attempts to update it have bitten the dust. In the meantime, the investment arena has changed dramatically - not only in Europe, but worldwide.
It is for these reasons that International Investment is launching its 'Cut the Red Tape Campaign'.
Fund management is now a global business and it needs global regulations and standards. Yet still professionals in the investment sector are faced with an array of domestic rules and regulations that differ dramatically from country to country.
To the rare few unconvinced as to the level of bureaucracy endemic in the investment industry, they need only refer to the billion dollar outsourcing industry built on the administrative burden facing those working in the investment sector. In the UK, for example, advisers have to contend with some of the most onerous compliance requirements in the world. As a result, many are faced with a growing mountain of paper and a reducing list of clients. In Europe, those battling to get European pension legislation on a fair footing are facing a wall of bureaucracy. The list goes on.
We are not suggesting that regulation or compliance is a bad thing. Quite the opposite. What we are suggesting is that regulations need to reflect the changing dynamics of the investment world. Too often regulations are spawned from a knee jerk reaction to one specific problem.
During the course of this year's Cut the Red Tape Campaign we plan to highlight areas of the investment industry where bureaucracy is blatantly excessive. It will be a forum for ideas and, over the coming months, we will be seeking the opinions of professionals in the investment industry - advisers, fund management groups, insurance groups, associations as well as the regulators themselves - to come up with some forward-thinking solutions. So if you do have examples of excessive bureaucracy or you think you can rewrite the rules on an aspect of investment, then let us know. We will also be featuring the campaign on our website www.globaladviser.com.
What made financial headlines over the weekend?
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch