Bringing you live news and features since 2006 

Hedgeweek Comment: Ucits IV delay may be justified


Reports that the Ucits IV project might be delayed or scrapped altogether should hardly come as a surprise to those following the financial crisis.

Reports that the Ucits IV project might be delayed or scrapped altogether should hardly come as a surprise to those following the financial crisis.

But what is the reasoning behind the delay? The EU has said that the deadline of April 30 to publish a draft directive outlining the new proposals will now be missed. This has created a widespread raft of displeasure, most notably among members of the European Parliament.

The concept of fund passporting and a pan-European single market for investment funds is, in general, a good one. Many if not all industry players are in favour of a full management company passport as it is perhaps the most efficient solution from the asset management side and it also poses no real problems from a servicing point of view. The industry desperately needs a single market to be competitive and wants this package finalised because of the many benefits to the funds industry.

But while there is a widespread belief that the European Commission might prefer a ‘partial’ management company passport, it’s also possible that Charlie McCreevy, the commissioner responsible for the internal market and services, might have deferred publication of the draft directive because of the continuing financial crisis and the potential spillover effects from the launch of the new legislation. Determining the impact of the current financial uncertainly is not easy and might justify a decision to put the Ucits IV project on hold.

After all, McCreevy, an Irishman who as finance minister between 1997 and 2004 contributed to his country’s emergence as a European financial services hub, must be as well placed as anyone to make the right decision.

Latest News

Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..
First Trust has announced the launch of the First Trust Vest U.S. Equity Moderate Buffer UCITS ETF – February GFEB..

Related Articles

Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin (BTC) ended the week at approximately USD52,150, showing a notable...
US Distribution Awards trophies
The winners of the first US ETF Distribution Awards at the Exchange conference, hosted by ETF Express and sponsored by...
Thomas Bonville, Clear Street
Just over a year ago, Thomas Bonville joined New York-based, prime brokerage Clear Street as managing director, head of derivative...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by