The European Fund and Asset Management Association (EFAMA) and the UK's Investment Management Associ...
The European Fund and Asset Management Association (EFAMA) and the UK's Investment Management Association (IMA) have called for the simplification of registration procedures for funds which are marketed cross-border in Europe.
In their report, 'A harmonised, simplified approach to Ucits registration', the EFAMA and the IMA argue that registration has become a time-consuming and costly process, "with little or no justification in terms of investor protection and that which it does deliver being available through a simpler process". This has been caused by asset managers requiring different visas to market their funds in each European Union state, said Steffen Matthias, secretary general of EFAMA.
He added that the direct costs of adhering to the different rules are estimated at B25m each year in addition to the initial registration costs of B20m but are "dwarfed by the indirect and opportunity costs faced by funds operating on a cross-border basis".
The report, therefore, has called for the Committee for European Securities Regulators (CESR) to implement a harmonised and simplified approach to the registration process. This covers proposals for common information requirements, registration fees, timescales, the treatment of umbrella funds, interaction with third countries and the simplification of maintaining registration.
The report also revealed the wide divergence in the cost of registering funds between EU countries. It cites the example of one pan-European provider registering its equity and fixed income umbrella funds. Whereas the initial registration cost B33,500 in Luxembourg and B36,500 in Austria, it cost B166,500 in Germany. There was no cost in maintaining registration in Italy but the asset manager was charged B17,500 in Luxembourg and B22,500 in Germany.
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