S.I. No. 51 of 2003

European Communities (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2003

I, Mary Harney, Minister for Enterprise, Trade and Employment, in exercise of the powers conferred on me by section 3 of the European Communities Act, 1972 ( No. 27 of 1972 ), and for the purpose of giving further effect to Council Directive No. 85/611/EEC of 20 December, 1985¹ , as amended by Council Directive No. 88/220/EEC of 22 March, 1988² and by European Parliament and Council Directive No. 95/26/EC of 29 June, 1995³ , hereby make the following regulations:

1.         (1)      These Regulations may be cited as the European Communities (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2003.

(2)      These Regulations shall come into operation on 17^th day of February 2003.

(3)      The European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 1989 ( S.I. No. 78 of 1989 ), the European Communities (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 1996 ( S.I. No. 357 of 1996 ), the European Communities (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 1999 ( S.I. No. 50 of 1999 ), and these Regulations may be cited together as the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 1989 to 2003 and shall be construed together as one.

2          The European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989 ( S.I. No. 78 of 1989 ) are amended by substituting the following for Regulation 5:

“Prohibition on conversion of UCITS into undertaking not subject to Directive

5.         (1)       A UCITS which is subject to these Regulations shall not convert itself into a collective investment undertaking which would not be subject to the Directive, and any purported conversion shall be null and void.

(2)       A UCITS which is subject to these Regulations and which proposes to convert itself into a collective investment undertaking which would be subject to the Directive shall comply with such conditions as the Bank may consider prudent to specify in relation to the conversion, for the purposes and in the interest of the orderly and proper regulation of UCITS in accordance with these Regulations.”.

EXPLANATORY NOTE

(This is not part of the Instrument and does not purport to be a legal interpretation)

These Regulations remove an anomaly that existed in Regulation 5 of the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 1989 ( S.I. No. 78 of 1989 ), which arose in the transposition of Article 1.5 of Council Directive No. 85/611/EEC of 20 December 1985.

Published by the Stationery Office, Dublin

¹ O.J. No. L375/3 of 31/12/85

² O.J. No. L100/31 of 19/4/88

³ O.J. No. L168/7 of 18/7/95