UCITS IV EN

Challenges: implementing the objectives of the 2006 white paper > To improve the information delivered to investors •The simplified prospectus does not enable investors to compare investment funds fonds > To maintain the same level of protection for investors, or even to reinforce it in a cross-border context where various supervision authorities interact > To remove cross-border fund distribution barriers •Quite long lead times to market funds •High distribution costs •Lack of an European passport for management companies gestion > To increase the average size of UCITS and favour economies of scale •A highly fragmented European market

1200

800 1000

American market

As at 31/12/2008

Europe (UCITS)

United States (Mutual funds)

600

Assets

4,575 €bn

6,899 €bn

400

Number of funds

37,643

8,022

European market

Number of funds 0 10000 20000 30000 40000 50000 0 200

Average size of funds

121,5 €m 860 €m

Average size of funds in €m

Source: EFAMA and ICI

7 > UCITS IV•01/10/09