NoC59/14 OfficialJournaloftheEuropeanCommunities 2.3.93
11.inAnnexIIthefollowingsentenceisaddedafter
'COMPONENTS ':
'ThisAnnexreferstocomponentscoveredbythe
harmonizedstandardssuchas:fireprotection,
steeringgear.';
12.point4ofAnnexIIisamendedasfollows:'Gasbottlesshallbestoredinanenclosureisolated
fromthelivingquaters..
9.thefirstparagraphofpoint5.6.1ofAnnexIis
amendedasfollows,(Fireprotection—General):
'Thetypeofequipmentinstalledandthelayoutof
thecraftshalltakeaccountoftheriskandspreadof
fireinthelivingquaters.Attentionshallbepaidto
thesurroundingsofopenflamedevices,especiallyin
thevicinityoftheenginecompartment.';
10.point5.7ofAnnexIisreplacedby:'4.Fixedfueltanksandfuelhoses.';
'5.7.Navigationlights13.inAnnexIIIthefollowingindentisaddedafterthe
secondindent:
'—adeclarationofconformityofthecomponent
withtheessentialrequirementsoftheDirective.'.Navigationlightsshallbefittedinaccordance
withthe1972COLREGConvention,as
subsequentlyamended.';
ProposalforaCouncilDirectiveamendingDirective85/611/EEConthecoordinationoflaws,
regulationsandadministrativeprovisionsrelatingtoundertakingsforcollectiveinvestmentin
transferrablesecurities(Ucits)
(93/C59/09)
COM(93)37final—SYN453
(SubmittedbytheCommissionon10February1993)
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle57(2)
thereof,
HavingregardtotheproposalfromtheCommission,
IncooperationwiththeEuropeanParliament,
HavingregardtotheopinionoftheEconomicand
SocialCommittee,
WhereasthescopeofCouncilDirective85/611/EEC
wasconfinedinitiallytocollectiveinvestmentunder­
takingsoftheopen-endtypewhichpromotethesaleof
theirunitstothepublicintheCommunityandthesole
objectofwhichisinvestmentintransferablesecurities;
whereasitwasenvisagedinthepreambletoDirective
85/611/EECthatundertakingsfallingoutsideitsscope
wouldbethesubjectofcoordinationatalaterstage;
Whereasmoneymarketfundsandfundsoffundshave
shownaconsiderablegrowthincertainMemberStates
inrecentyears;whereasthesetwocategoriesoffunds,
giventheiroperationalfeaturesandinvestmentobject,
mayberegardedasveryclosetoUcits;whereasitisdesirabletobringthesefundswithinthescopeof
Directive85/611/EECsincetheattainmentofthis
objectivewillfacilitatetheremovaloftherestrictionson
thefreecirculationoftheunitsofthesefundsinthe
Communityandsuchcoordination isnecessarytobring
aboutaEuropeancapitalmarket;
Whereastheinclusionofmoneymarketfundsis
achievedbyallowingUcitstoinvestfreelyinmoney
marketinstruments;whereasmoneymarketinstruments
coverthoseclassesoftransferableinstrumentswhichare
normallydealtinonthemoneymarket,forexample
treasuryandlocalauthoritybills,certificatesofdeposit,
commercialpaperandbankers'acceptances ;whereas
MemberStatesshouldhavetheoptionofchoosingthe
listofeligiblemoneymarketinstrumentsonthebasisof
objectivecriteriatotakeaccountoftheexisting
structuraldifferencesinthemoneymarketsofdifferent
countries;
Whereas,totakemarketsdevelopmentsintoaccount,it
isdesirablethattheinvestmentobjectofUcitsiswidened
inordertopermitthemalsotoinvestinbanking
deposits;
WhereasonlyUcitsinvestingsolelyinunitsissuedby
otherUcits(fundofUcits)maybebroughtwithinthe

2.3.93 OfficialJournaloftheEuropeanCommunities NoC59/15
Whereasitisappropriatetofavourthereductionofcosts
relatedtotranslationofdocumentsinthecross-border
marketingwithoutimpairingthedegreeofinvestor
protection;
Whereastechnicaladaptationstotheruleslaiddownin
thisDirectivemayfromtimetotimebenecessarytotake
newdevelopments intheinvestmentfundsfieldinto
account;whereasitisdesirabletosetageneralcriterion
todefinethetechnicalnatureofmodifications ;whereas
itisimportantthatthesetechnicalmodificationsshould
beadoptedinaccordancewiththeprocedureestablished
inDirective .../EEC,
HASADOPTEDTHISDIRECTIVE :
Article1
InDirective85/611/EEC,asamendedbyDirective
88/220/EEC,thefollowingamendmentsaremade:
1.Article1(2)shallbereplacedbythefollowing:
'2.ForthepurposesofthisDirective:scopeofDirective85/611/EEC;whereasafundofUcits
maybeidentifiedonthebasisofaminimumnumberof
Ucitsinwhichitcaninvest;whereasitisimportantthat
afundofUcitsensurestoinvestorsanadequatedegree
ofdisclosureonthecoststheyincur;
Whereasitisappropriatethat,saveexplicitlymentioned
exemptions,theruleslaiddownfortheauthorization ,
supervision ,structureandactivitiesofUcitsandforthe
informationtobepublishedshouldapplytomoney
marketfundsandfundsofUcitsaswell;
Whereas,forprudentialreasons,Ucitsshouldavoid
assuminganexcessiveconcentrationofbankingdeposits
toasinglecreditinstitution ;
Whereasmanydirectiveshavebeenadoptedinthe
financialfieldinrecentyears;whereasitseemstherefore
advisabletobringsomeArticlesofDirective
85/611/EECmoreinlinewithexistingprovisionsofthe
Communitylegislation ;
WhereasCouncilDirective89/646/EECandDirective
../.../EEC(InvestmentServicesDirective)providedthe
basisforthesinglelicencetosupplyfinancialservicesto
creditinstitutionsandinvestmentfirmsrespectively ;
whereasMemberStatesshouldnotthereforerestrictthe
freedomofUcitstochooseadepositoryestablishedin
anotherMemberStateandauthorizedundertheabove
Directives;
WhereasitisdesirabletomaketheSingleMarket
accessibletoinstitutionsandfirmsofthirdcountriesin
respectofthedepositaryfunction;whereasitisessential
toprovidethattherulesappliedtosuchfirmsmaynot
bemorefavourablethanthoseforbranchesof
institutionsandfirmsfromanotherMemberState;
WhereasArticle21ofDirective85/611/EECcontains
therulesunderwhichUcitsareallowedtousederivative
instruments ;whereasitisnecessaryfortheprotectionof
investorstoprovideforaharmonizedframeworkby
introducingaminimumquantitativeceilingfortheutil­
izationoffinancialderivatives;whereas,consideringthe
newportfoliomanagementtechniqueswhichhave
developedinrecentyears,itisdesirablethatUcitsmay
use,incompliancewiththeabovequantitativelimit,
financialfuturesandoptionsforthepurposeofadjusting
theirportfolio'scompositiononatemporarybasis;
Whereasthecurrentlimitof5%concerningthepossi­
bilityforUcitsofinvestinginotherUcitsprovedtobe
toostringentincertainmarkets;
WhereasArticle25(1)ofDirective85/611/EEC
envisagedacoordinationoftheconceptofsignificant
influenceatalaterstage;whereas,giventheresult
achievedinthisfieldinotherdirectives,itisdesirableto
definesignificantinfluenceintermsofaquantitative
limit;(l)"Ucits"shall,subjecttoArticle2(1),beunder­
takings:
—thesoleobjectofwhichisthecollective
investmentintransferablesecuritiesand/or
toplacedepositswithcreditinstitutionsof
capitalraisedfromthepublicandwhich
operateontheprincipleofrisk-spreading ,
or
—thesoleobjectofwhichisthecollective
investment inunitsofotherUcitsin
accordancewiththeprovisionsinArticle26
(a)ofcapitalraisedfromthepublicand
whichoperateontheprincipleofrisk­
spreading,and
—theunitsofwhichare,attherequestof
holders,repurchasedorredeemed,directly
orindirectly,outofthoseundertakings'
assets.ActiontakenbyaUcitstoensurethat
thestockexchangevalueofitsunitsdoes
notsignificantlyvaryfromtheirnetasset
valueshallberegardedasequivalenttosuch
repurchaseorredemption;
(ii)"transferablesecurities"shallmeantransferable
securitiesasdefinedinArticle1ofDirective
../.../EEC(ISD);
(iii)"moneymarketinstruments"which,forthe
purposesofthisDirective,shallberegardedas
transferablesecurities,shallmeanthoseclasses
oftransferableinstrumentsnormallydealtinon
themoneymarketwhichtheMemberStates
considerto:
—beliquid,and
—haveavaluewhichcanbeaccurately
determinedatanytimeoratleastwiththe
frequencystipulatedinArticle34.';

NoC59/16 OfficialJournaloftheEuropeanCommunities 2.3.93
8.inArticle21thefollowingparagraphshallbeadded:
'3.inthiscontextUcitsmaycarryouttrans­
actionsinfinancialderivativeinstrumentsprovided
thattheexposuresrelatingtotheseinstrumentsare
coveredinthesensethatUcitsmustholdassets
whichmayreasonablybeexpectedtofulfilactualor
potentialobligationswhichexistormayariseasa
resultofthederivativesthemselves.';
9.inArticle22thefollowingparagraphshallbeadded:
'6.AUcitsmayplacenomorethan20%ofits
assetsondepositswiththesamecreditinstitutionor
creditinstitutionswithinthesamegroup.';
10.inArticle24(1),'ofthefirstandsecondindentsof
Article1(2)'shallbereplacedby:'ofthefirstand
thirdindentsofArticle1(2)(i)';
11.inArticle24(2),'5%'shallbereplacedby'10%';
12.Article25(1),shallbereplacedbythefollowing :
'1.Aninvestmentcompanyoramanagement
companyactinginconnectionwithalloftheunit
trustswhichitmanagesandwhichfallwithinthe
scopeofthisDirectivemaynotacquireanyshares
carryingvotingrightswhichdirectlyorindirectly
represent10%ormoreofthecapitalorofthe
votingrightsorwhichmakeitpossibletoexercisea
significantinfluenceoverthemanagementofthe
issuingbody.Thevotingrightsreferredtoin
Article7ofDirective88/627/EECshallbetaken
intoconsideration.';
13.inarticle25(2),thirdindent,'ofthefirstandsecond
indentsofArticle1(2)'shallbereplacedby:'ofthe
firstandthirdindentsofArticle1(2)(i)';
14.afterArticle26thefollowingnewArticle26ashall
beadded:2.Article8(1),isreplacedby:
'1.Adepositorymusthaveanestablishmentinthe
sameMemberStateasthatofthemanagement
company.';
3.inArticle8thefollowingtwoparagraphsshallbe
added:
'4.Notwithstanding theprovisionsinparagraphs
1and3thecompetentauthoritiesmayallowunit
trustsfreelytochooseadepositorywhichisauth­
orizedtodosafekeepingandadministration of
securitiesinoneoftheMemberStatesaccordingto
Directive89/646/EECorDirective ../.../EEC
(ISD).
5.MemberStatesshallnotapplytodepositories
whicharebranchesofinstitutionsorfirmshaving
theirheadofficeoutsidetheCommunity ,when
commencingorcarryingontheirservices,provisions
whichresultinmorefavourabletreatmentthanthat
accordedtodepositorieswhicharebranchesof
institutionsoffirmshavingtheirheadofficeinthe
Community.';
4.Article15(1),isreplacedby:
'1.Adepositorymusthaveanestablishmentinthe
sameMemberStateasthatoftheinvestment
company.';
5.inArticle15thefollowingtwoparagraphsshallbe
added:
'4.Notwithstanding theprovisionsinparagraphs
1and3thecompetentauthoritiesmayallow
investmentcompaniesfreelytochooseadepository
whichisauthorizedtodosafekeepingandadminis­
trationofsecuritiesinoneoftheMemberStates
accordingtoDirective89/646/EECorDirective
../.../EEC(ISD).
5.MemberStatesshallnotapplytodepositories
whicharebranchesofinstitutionsorfirmshaving
theirheadofficeoutsidetheCommunity,when
commencingorcarryingontheirservices,provisions
whichresultinmorefavourabletreatmentthanthat
accordedtodepositorieswhicharebranchesof
institutionsoffirmshavingtheirheadofficeinthe
Community.';
6.inArticle19thefollowingshallbeaddedto
paragraph 1:'Article26a
Notwithstanding Article24(2),Article24(3)first
subparagraphandArticle25(2)thirdindentaUcits
(hereinafterreferredtoasa"fundofUcits")may
investitsassetsinunitsissuedbyotherUcits
providedthatthefollowingconditionsaremet:
(a)afundofUcitsmustinvestitsassetsexclusively
inunitsissuedbyUcitssubjecttotheprovisions
ofthisDirectiveandmayholdancillaryliquid
assetsbutmustnotinvestintransferable
securitiesorinunitsissuedbyotherfundsof
Ucits;'and/or
(e)moneymarketinstruments';
7.inArticle19(2)(b)after'10°/oofitsassetsindebt
instruments',shallbeadded,'otherthanmoney
marketinstruments ,...';

2.3.93 OfficialJournaloftheEuropeanCommunities NoC59/17
(b)afundofUGitsmustnotinvestmorethan20%
ofitsassetsinasingleUcitswhichmeetsthe
criteriasetoutin(a);
(c)afundofUcitsmustdescribeinitsinstruments
ofincorporationorfundrulesandinitspros­
pectusoranypromotionalliteraturethecharac­
teristicsoftheUcitsintheunitsofwhichitis
authorizedtoinvest.Theprospectusmustclearly
describethenatureoffees,charges,taxes,
commissionsandothercostswhichdirectlyor
indirectlyareexpectedtobebornebythefund
ofUcits'unit-holders.';
15.Article44(2)shallbereplacedbythefollowing :
'2.Nothinginparagraph 1shallpreventUcits
withheadofficesinotherMemberStatesfrom
advertisingtheirunitsthroughallavailablemeansof
communication inthehostMemberState,subjectto
anyrulesgoverningtheformandthecontentof
suchadvertisingadoptedintheinterestofthe
generalgood.';
16.inArticle47,'inatleastoneofthatotherMember
State'sofficiallanguages',isreplacedby:'ina
languagewhichiseasilyunderstandable forthe
investorsconcernedinthatotherMemberState';
17.Article50shallbereplacedby:ranteesofprofessionalsecrecyatleastequivalentto
thosereferredtointhisArticle.
4.TheauthoritiesreferredtoinArticle49which
receiveconfidentialinformationunderparagraphs 1
or2mayuseitonlyinthecourseoftheirduties:
—tocheckthattheconditionsgoverningthetaking
upofthebusinessofUcitsaremetandto
facilitatethemonitoringoftheconductofsuch
business,especiallywithregardtoadministrative
andaccountingproceduresandinternalcontrol
mechanisms ,or
—toimposesanctions,or
—inanadministrative appealagainstadecisionof
thecompetentauthorities,or
—incourtproceedings ,initiatedunderArticle51
(2).
5.Paragraphs 1and4shallnotprecludethe
exchangeofinformation :
(a)withinaMemberState,wheretherearetwoor
morecompetentauthorities;or
(b)betweenMemberStates,betweencompetent
authorities ;and
—authoritiesresponsibleforthesupervisionof
otherfinancialorganizations andinsurance
undertakingsandtheauthoritiesresponsible
forthesupervisionoffinancialmarkets,
—bodiesinvolvedintheliquidationofUcits
andinothersimilarprocedures,or
—personsresponsibleforcarryingoutstatutory
auditsoftheaccountsofUcitsandother
financialinstitutions ,
inthedischargeoftheirsupervisoryfunctions.The
informationreceivedshallbesubjecttothe
conditionsofprofessionalsecrecyreferredtoin
paragraph 1.
6.ThisArticleshallnotpreventanauthority
referredtoinArticle49fromdisclosingtothose
centralbankswhichdonotsuperviseUcitsindi­
viduallysuchinformationastheymayneedtoactas
monetaryauthorities .Informationreceivedinthis
contextshallbesubjecttotheconditionsof
professionalsecrecyreferredtoinparagraph 1.
7.Inaddition,notwithstanding theprovisions
referredtoinparagraphs 1and4,theMember
Statesmay,byvirtueofprovisionslaiddownbylaw,
authorizethedisclosureofcertaininformationto
otherdepartmentsoftheircentralgovernment
administrations responsibleforlegislationonthe
supervision ofcreditinstitutions ,financial
institutions ,investmentfirmsandinsuranceunder­
takingsandtoinspectorsactingonbehalfofthose'Article50
1.MemberStatesshallprovidethatallpersons
whoworkorwhohaveworkedfortheauthorities
referredtoinArticle49,aswellasauditorsand
expertsactingonbehalfoftheseauthorities,shallbe
boundbytheobligationofprofessionalsecrecy.
Thatmeansthatnoconfidentialinformationwhich
theymayreceiveinthecourseoftheirdutiesmaybe
divulgedtoanypersonorauthoritywhatsoever,
exceptinsummaryoraggregateform,suchthat
individualUcitscannotbeidentified,without
prejudicetocasescoveredbycriminallaw.
Nevertheless ,whereaUcitshasbeendeclared
bankruptorisbeingcompulsorilywoundup,
confidentialinformationwhichdoesnotconcern
thirdpartiesinvolvedinattemptstorescuethatUcits
maybedivulgedincivilorcommercialproceedings .
2.Paragraph 1shallnotpreventtheauthoritiesof
thevariousMemberStatesreferredtoinArticle49
fromexchanginginformationinaccordancewiththis
Directive .Suchinformationshallbesubjecttothe
conditionsofprofessionalsecrecyreferredtoin
paragraph 1.
3.MemberStatesmayconcludecooperation
agreementsprovidingforexchangesofinformation
withthecompetentauthoritiesofthirdcountries
onlyiftheinformationdisclosedissubjecttogua­

NoC59/18 OfficialJournaloftheEuropeanCommunities 2.3.93
strictrequirementsfortheUcitsinordertotake
accountofdevelopmentsonfinancialmarkets,
—alignmentofterminologyonandtheframingof
definitionsinaccordancewithsubsequentactson
firmsandrelatedmatters.'departments .However,suchdisclosuremaybemade
onlywherenecessaryforreasonsofprudential
control.
TheMemberStatesshall,however,providethat
informationreceivedunderparagraphs2and5may
neverbedisclosedinthecasesreferredtointhis
paragraphexceptwiththeexpressconsentofthe
competentauthoritieswhichdisclosedtheinfor­
mation.';
18.afterArticle53thefollowingnewArticle53ais
added:Article2
'Article53a1.MemberStatesshallbringintoforcethelaws,
regulationsandadministrative provisionsnecessaryto
complywiththisDirectiveby1July1994atthelatest.
WhenMemberStatesadoptthemeasuresreferredtoin
thefirstsubparagraph ,theyshallcontainareferenceto
thisDirectiveorshallbeaccompaniedbysuchreference
ontheoccasionoftheirofficialpublication .The
methodsofmakingsuchareferenceshallbelaiddown
bytheMemberStates.
2.MemberStatesshallcommunicate tothe
Commissionthetextofprovisionsofnationallawwhich
theyadoptinthefieldgovernedbythisDirective.Thetechnicalmodifications tobemadetothis
Directiveinthefollowingareasshallbeadoptedin
accordancewiththeprocedurelaiddownin
Directive ../.../EEC:
—clarificationofthedefinitionsinordertoensure
uniformapplicationofthisDirectivethroughout
theCommunity ,
—adaptationoftheceilingsreferredtoinArticles
19(2)and(3),21(3),22,24(2),25and36(2)
wheresuchadaptationswillnotleadtomoreArticle3
ThisDirectiveisaddressedtotheMemberStates.