The Committee Of European Securities Regulators is set to hold a second consultation on assets eligible for inclusion in European investment funds regulated by the UCITS III directive. The directive, issued last February (DW, 12/22/03), allows derivatives in mutual funds to be used for investment, but it hit a stumbling block when some local European regulators allowed hedge fund and commodity index swaps into UCITS funds while other regulators noted these are not classed as eligible assets under earlier UCITS directives.
CESR closed its first consultation June 10, and officials close to the process were hopeful the committee would pave the way for fund-linked derivatives, commodity and property swaps to be allowed in funds (DW, 6/27). But CESR issued a statement last month confirming it will postpone its end of October deadline for clarifying eligible assets to mid-January. The committee is now preparing to hold a second consultation period this autumn, but no further details of dates were available as DW went to press.
