European Parliament resolution on the draft Commission directive implementing Council Directive 85/611/EEC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) as regards the clarification of certain definitions
Date: 2006-12-13
Institutions: European Parliament
Subjects: European Commission, approximation of laws, investment company, investment transaction, powers of the institutions (EU), securities

C 317 E/478

EN

Official Journal of the European Union

23.12.2006

Wednesday, 13 December 2006

20.
In this regard, expresses serious concern at the measures implemented by Russia against Georgia,
which are having huge economic, political and humanitarian consequences; therefore calls on the Russian
authorities to lift the unjustified ban on sensitive exports from Georgia to Russia as well as to stop the
ongoing repression of ethnic Georgians living in Russia;

21.
Emphasises the need for the EU to act with unity and determination in its efforts to strengthen
relations with Russia; welcomes the intention of the German Presidency to give further high priority to this
important issue;

Instructs its President to forward this resolution to the Council, the Commission and the Governments

22.
and Parliaments of the Member States and of the Russian Federation.

P6_TA(2006)0567

Implementing Directive 85/611/EEC (UCITS III)

resolution on the draft Commission directive implementing Council
European Parliament
Directive 85/611/EEC on the coordination of
laws, regulations and administrative provisions
relating to undertakings for collective investment in transferable securities (UCITS) as regards the
clarification of certain definitions

The European Parliament,

— having regard to Council Directive 85/611/EEC of 20 December 1985 on the coordination of
laws, regulations and administrative provisions relating to undertakings for collective investment in
transferable securities (UCITS) (1) (the UCITS-III Directive),

— having regard to the draft Commission directive of 13 September 2006 implementing Council
Directive 85/611/EEC on the coordination of laws, regulations and administrative provisions relating to
undertakings for collective investment in transferable securities (UCITS) as regards the clarification of
certain definitions (working document ESC/43/2006) (the Draft Implementing Directive),

— having regard to the advice of the Committee on European Securities Regulators (the CESR) to the
European Commission on Clarification of Definitions concerning Eligible Assets for Investments of
UCITS of January 2006 (2),

— having regard to Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the

exercise of implementing powers conferred on the Commission (3),

— having regard to the statement made by Romano Prodi, President of the European Commission, before

the European Parliament on 5 February 2002 (4),

— having regard to its resolution of 5 February 2002 on the implementation of

financial services

legislation (5),

— having regard to its resolution of 27 April 2006 on asset management (6),

— having regard to Rule 81 of its Rules of Procedure,

(1) OJ L 375, 31.12.1985, p. 3.
(2) CESR/06-005.
(3) OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/512/EC (OJ L 200, 22.7.2006, p. 11).
(4) SPEECH/02/44.
(5) OJ C 284 E, 21.11.2002, p. 115.
(6) Texts Adopted, P6_TA(2006)0181.

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Official Journal of the European Union

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A. whereas assets which are eligible for UCITS have so far been interpreted differently by the supervisory
authorities in the Member States, which means that, in practice, different products have been offered as
UCITS,

B. whereas a uniform, Europe-wide clarification of certain definitions of eligible assets is necessary in order

to complete the single market,

1.
Takes the view that a regulation, rather than a directive, is the best option to ensure the uniform,
consistent and rapid transposition of the new definitions into national law; calls on the Commission to set
out the reasons for preferring a directive and to examine whether its proposal for a directive can be trans-
formed into a proposal for a regulation;

2.
Emphasises that the CESR has made a valuable contribution to the drafting of new definitions of eligible
assets for investments of UCITS and should therefore continue to be involved in its capacity as a so-called
Level 3 group, particularly in order to ensure the consistency of the definitions clarified in the implementing
measures in their day-to-day application; looks in this regard to CESR to issue a statement in the foreseeable
future on whether Hedge Fund Indices are eligible assets; notes that Hedge Fund Indices must fulfil the basic
criteria required to become eligible under UCITS III, such as sufficient diversification, the ability to serve as
an adequate benchmark and appropriate publication;

Transferable securities

Stresses the importance of a presumption of

3.
liquidity in relation to the transferable securities, as
referred to in Article 2(1) of the draft implementing directive, for the proper functioning of asset manage-
ment activities, and calls on the Commission to make provision for the inclusion of this principle at the
appropriate level;

Money market instruments

4. Calls on the Commission to extend the settlement period for money market instruments, which are
normally traded on the money markets, from one year to a maximum of precisely 397 days, which
will mean that money market instruments either have a maturity at issue of up to 397 days or have a
residual maturity of up to 397 days or undergo regular yield adjustments in line with money market
conditions at least every 397 days; points out in this regard that this amendment both takes into account
Directive 2004/39/EC (1) and allows comparability with the rules of the US Financial Supervisory Authority;

Financial indices

5. Notes that the UCITS-III Directive fails to stipulate whether the financial indices may be based only on
eligible assets or also on non-eligible assets and that Article 9 of the Draft Implementing Directive defines
both categories as eligible assets, provided that all the criteria for diversification set out in Article 22a(1) of
the UCITS-III Directive are met;

6.
Points out that Article 9 of the Draft Implementing Directive is intended to allow Member States to
raise the investment threshold for regulated markets in which certain financial market instruments and
securities are very dominant (from 20 % to 35 %); considers that this means that Article 9 of the Draft
Implementing Directive should refer not only to Article 22a(1), but also to Article 22a(2), of the UCITS-III
Directive;

7. Understands that, in accordance with Article 9(1)(a)(iii) of the Draft Implementing Directive, invest-
ments in indices that are composed of assets not set out in Article 19(1) of the UCITS-III Directive shall be
permissible; points out in this regard, however, that Article 9(1)(a)(iii) of the Draft Implementing Directive
does not deal adequately with some of these indices, because Article 22a(1) of the UCITS-III Directive, to
which it refers, establishes limitations only with regard to the issuers of shares or debt securities and does
not cover indices where diversification does not depend on the type of issuer, such as commodity indices,
where diversification depends on the type of commodity; calls on the Commission, therefore, to extend the
scope of Article 9(1)(a)(iii) of the Draft Implementing Directive to the effect that, where an index is
adequately captured by the UCITS risk management system, it shall be considered sufficiently diversified;

(1) Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instru-
ments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament
and of the Council and repealing Council Directive 93/22/EEC (OJ L 145, 30.4.2004, p. 1).

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Official Journal of the European Union

23.12.2006

Wednesday, 13 December 2006

Asset-backed commercial papers

8.
Takes the view that not only two-tier asset-backed commercial papers should be authorised as eligible
assets, and calls, therefore, on the Commission, having due regard to the fourth indent of Article 19(1)(h) of
the UCITS-III Directive, also to allow other asset-backed commercial papers as UCITS assets;

*

*

*

9.

Instructs its President to forward this resolution to the Council, the Commission and the CESR.

P6_TA(2006)0568

Enlargement Strategy and Main Challenges 2006-2007

European Parliament resolution on the Commission's Communication on the Enlargement Strategy
and Main Challenges 2006-2007 (2006/2252(INI))

The European Parliament,

— having regard to the Commission's Communication on the Enlargement Strategy and Main Challenges

2006-2007 (COM(2006)0649),

— having regard to its resolution of 27 September 2006 on Turkey's progress towards accession (1),

— having regard to the Presidency conclusions of the Copenhagen European Council of 21-22 June 1993
and of the Madrid European Council of 15-16 December 1995, of the Luxembourg European Council
of 12-13 December 1997, of the Thessaloniki European Council of 19-20 June 2003 and of the Brussels
Councils of 16-17 December 2004, 16-17 June 2005 and 15-16 June 2006,

— having regard to its resolution of 16 March 2006 on the 2005 enlargement strategy paper (2),

— having regard to its resolution of 19 January 2006 on the period of reflection: the structure, subjects

and context for an assessment of the debate on the European Union (3),

— having regard to Rule 45 of its Rules of Procedure,

— having regard to the report of the Committee on Foreign Affairs (A6-0436/2006), whereas,

A.

the European Union is a political project based on shared values and commonly pursued objectives,

B.

C.

the EU has evolved into a political union of democracies which is itself committed to democratic stan-
dards and to developing a vivid democratic culture,

the incentive offered by the prospect of EU membership has undeniably contributed to the promotion of
reforms, the consolidation of democracy, increased respect for human rights and increasing stability in
neighbouring countries,

(1) Texts Adopted, P6_TA(2006)0381.
(2) Texts Adopted, P6_TA(2006)0096.
(3) OJ C 287 E, 24.11.2006, p. 306.