Press Release: Commission sets out steps to clarify the responsibilities of UCITS depositaries

The UCITS regulatory framework has proved very resilient during the current crisis. However, the depositaries of 4 UCITS funds (from a population of 30'000 funds) entrusted fund assets, worth 1.6bn€ to Madoff entities and those assets have not yet been recovered. On the 12th January, Mme Lagarde, the Minister for finance and economy in France addressed a letter to Commissioner McCreevv highlighting the diverging approaches that Member states have taken on the role and liability of UCITS funds' depositaries. This situation could imply intolerable differences in investor protection depending on the domicile of fund depositaries. This matter was also discussed by EU Finance Ministers at ECOFIN Council on 20th January. On the occasion of the ECOFIN Council, Commissioner McCreevy explained the steps that the Commission will take to respond to these concerns.

European Commission: MEMO/09/27: Responsibilities of UCITS depositaries : Frequently Asked Questions http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/27&format=HTML&aged=0&language=EN&guiLanguage=en

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