The Investment Management Association (Ima) has welcomed a commitment by the European Commission to take concrete steps to improve the efficiency and cost-effectiveness of European investment funds.
The improvements, which are put forward in a White Paper, will simplify the current Directive on investment funds in a bid to ensure that investors receive useful cost and performance disclosures when selecting funds. It is also intended to make it easier for the industry to achieve cost savings and specialisation benefits across the single market.
The Commission plans to propose these changes in autumn 2007, in the form of amendments to the current Directive. Meanwhile, it will also look at whether there is a need to make similar changes for other fund products, especially real estate funds, that are not covered by the current EU framework.
Sheila Nicoll, deputy chief executive of Ima, said: "We are very pleased that the Commission has understood the need to support the European fund industry as it restructures to meet new competitive challenges and the changing needs of European investors.
“It has clearly understood the role of investment fund managers in pension provision as well as the need to keep European-based funds in the global vanguard. There has been a great deal of consultation and discussion over the last few years. Now it is a question of making it happen."
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