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.<\/p>\n
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.<\/p>\n
UCITS, or undertakings in collective investments in transferable securities, are seen as the “gold standard” of open-ended mutual funds, offering strong investor protection.<\/p>\n
They have strict rules on what they can invest in and focus on mainstream asset classes such as stocks and bonds.<\/p>\n
The watchdog group put forward preliminary ideas for consultation that stopped short of an outright ban.<\/p>\n