31.12.85 OfficialJournaloftheEuropeanCommunities NoL372/39
COUNCILDIRECTIVE
of20December1985
amendingtheDirectiveof11May1960ontheimplementation ofArticle67oftheTreaty
(85/583/EEC)
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle69
thereof,
HavingregardtotheproposalfromtheCommission,
submittedafterconsultation oftheMonetary
Committee,
WhereastheCouncilDirectiveof11May1960forthe
implementation ofArticle67oftheTreaty('),as
amendedbyDirective63/21/EEC(2),excluded
transactionsintheunitsofunittrustsfromthecapital
movementsreferredtoinArticle2thereofandsetoutin
ListBofAnnexItheretoandincludedtheminthe
capitalmovementsreferredtoinArticle3thereofandset
outinListCofAnnexIthereto;
WhereasCouncilDirective85/611/EECof20
December1985(3)hascoordinatedthelaws,regulations
andadministrative provisionsregardingcertainunder­
takingsforcollectiveinvestmentintransferablesecurities
(UCITS);whereasthatcoordination ,whichprovides
investorswithmoreeffectiveprotectionandwithmoreuniformsafeguards,makesitpossibletoremovethe
restrictionsonthefreemovementoftheunitsofsuch
undertakings ;whereas,moreover,retentionofthose
restrictionswouldsubstantiallyreducetheeffectofthose
provisionsofthatDirectivewhichrelatetothemarketing
oftheunitsofsuchundertakings ;
Whereas,pursuanttothesubparagraphofArticle229of
theActofAccessionof1985,thePortugueseRepublic
maypostponeuntil31December1990theliberalization
ofthetransactions setoutinListBinAnnexItothe
Directiveof11May1960concerningtheacquisitionof
foreignsecuritiesbyresidents;whereasthePortuguese
Republicshouldbeabletopostponetothesamedatethe
liberalizationpursuanttothisDirectiveoftransactionsof
thesamekindintheunitsofforeignUCITScarriedout
byresidents,
HASADOPTEDTHISDIRECTIVE :
Article1
AnnexItotheDirectiveof11May1960ishereby
amendedasfollows:
1.ThefollowingshallbesubstitutedforListB:
'LISTB
CapitalmovementsreferredtoinArticle2oftheDirective
Itemsofnomenclature
Operationsinsecurities:
(a)Securitiesdealtinonstockexchanges
Acquisitionbynon-residentsofdomesticsecuritiesandrepatriationoftheproceedsofthe
liquidationthereof IVA
—excludingunitsofunittrustsnotgovernedbyDirective85/611/EEC
Acquisitionbyresidentsofforeignsecuritiesanduseoftheproceedsoftheliquidation
thereof IVB
—excludingbondsissuedonforeignmarketsanddenominatedinnationalcurrency
—excludingunitsofunittrustsnotgovernedbyDirective85/611/EEC
oOJNo43,12.7.1960,p.921/60.
(2)OJNo9,22.1.1963,p.62/63.
OOJNoL375,31.12.1985.

NoL372/40 OfficialJournaloftheEuropeanCommunities 31.12.85
Itemsofnomenclature
(b)Securitiesnotdealtinonstockexchanges
Acquisitionbynon-residentsofunitsofdomesticundertakingsforcollectiveinvestmentin
transferablesecuritiesgovernedbyDirective85/611/EECandrepatriationoftheproceeds
oftheliquidationthereof
Acquisitionbyresidentsofunitsofforeignundertakingsforcollectiveinvestmentin
transferablesecuritiesgovernedbyDirective85/611/EECanduseoftheproceedsofthe
liquidationthereof
(c)Physicalmovementsofthesecuritiesmentionedin(a)and(b)IVC
IVD
IVE
inconjunctionwithIVAand
IVC,IVBandIVD
Theuseoftheproceedsoftheliquidationofassetsabroadbelongingtoresidentsmustbepermittedatleastwithinthelimitsofthe
obligationsasregardsliberalizationacceptedbyMemberStates.'
2.Thefollowingshallbesubstitutedforthesectionon'Operationsinsecurities'inListC:
Itemsofnomenclature
'Operationsinsecurities:
(a)Securitiesdealtinonstockexchanges
Acquisitionbynon-residentsofunitsofdomesticunittrustsnotgovernedbyDirective
85/611/EECandrepatriationoftheproceedsoftheliquidationthereof IVA
AcquisitionbyresidentsofunitsofforeignunittrustsnotgovernedbyDirective
85/611/EECanduseoftheproceedsoftheliquidationthereof IVB
Acquisitionbyresidentsofforeignbondsissuedonforeignmarketsanddenominatedin
nationalcurrency IVB3(i)
(b)Securitiesnotdealtinonstockexchanges
Acquisitionbynon-residentsofdomesticsecuritiesandrepatriationoftheproceedsofthe
liquidationthereof IVC
—excludingunitsofdomesticundertakingsforcollectiveinvestmentintransferable
securitiesgovernedbyDirective85/611/EEC
Acquisitionbyresidentsofforeignsecuritiesanduseoftheproceedsoftheliquidation
thereof IVD
—excludingunitsofforeignundertakingsforcollectiveinvestmentintransferable
securitiesgovernedbyDirective85/611/EEC
(c)Physicalmovementsofthesecuritiesmentionedin(a)and(b) IVE
inconjunctionwithIVAand
IVC,IVBandIVD'
Article2
TheExplanatoryNotesinAnnexIItotheDirectiveof
11May1960shallbesupplemented asfollows:
'Undertakingsforcollectiveinvestmentintransferable
securities(UCITS)
Undertakingstheyraiseandwhichoperateontheprincipleof
risk-spreading ,and
—theunitsofwhichare,attherequestofholders,
underthelegal,contractualorstatutary
conditionsgoverningthem,repurchasedor
redeemed,directlyorindirectly,outofthose
undertakings'assets.ActiontakenbyaUCITSto
ensurethatthestockexchangevalueofitsunits
doesnotsignificantlyvaryfromtheirnetasset
valueshallberegardedasequivalenttosuch
repurchaseorredemption .
Suchundertakingsmaybeconstitutedaccordingto
laweitherunderthelawofcontract(ascommon
fundsmanagedbymanagementcompanies)ortrust—thesoleobjectofwhichisthecollective
investmentintransferablesecuritiesofthecapital

31.12.85 OfficialJournaloftheEuropeanCommunities NoL372/41
law(asunittrusts)orunderstatute(asinvestment
companies).
ForthepurposesofthisDirective"commonfunds"
shallalsoincludeunittrusts.'ThePortugueseRepublicmaypostponeuntil31
December1990theliberalizationoftheacquisitionby­
residentsoftheunitsofforeigncollectiveinvestment
undertakingscoveredbyDirective85/611/EEC.
Article4
ThisDirectiveisaddressedtotheMemberStates.
DoneatBrussels,20December1985.
FortheCouncil
ThePresident
R.KRIEPSArticle3
TheMemberStatesshallbringintoforcethemeasures
necessaryforthemtocomplywiththisDirectiveby1
October1989atthelatestandshallforthwithinformthe
Commissionthereof.