Reuters Italia – European Union market regulators said on Tuesday they would allow indexes that track hedge funds to be included in cross-border funds popular with small investors, but under strictconditions.
The Committee of European Securities Regulators signalled a shift from its outright refusal last year, pending a review, to recommend such indexes for inclusion in EU-regulated funds known as UCITS to broaden their appeal and encourage more saving.
UCITS, or undertakings in collective investments in transferable securities, are seen as the “gold standard” of open-ended mutual funds, offering strong investor protection.
They have strict rules on what they can invest in and focus on mainstream asset classes such as stocks and bonds.
The watchdog group put forward preliminary ideas for consultation that stopped short of an outright ban.
