S.I. No. 287 of 2006

European Communities (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2006

I, Micheál Martin, 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 , Directive No. 95/26/EC of 29 June 1995 of the European Parliament and of the Council³ , Directive No. 2001/108/EC of 21 January 2002 of the European Parliament and of the Council⁴ and Directive No. 2001/107/EC of 21 January 2002 of the European Parliament and of the Council⁵ , 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 2006.

(2)      These Regulations come into operation on 13 February 2007.

2.         Regulation 31(3) of the European Communities (Undertakings for Collective Investment in Transferable Securities)(Amendment No. 2) Regulations 2003 ( S.I. No. 497 of 2003 ) is revoked.

Explanatory Note

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

The purpose of this Statutory Instrument is to give further legal effect to Directive 2110/107/EC of 21 January 2002 of the European Parliament and Council. This is known as the -�Management Directive-�.

The Management Directive amended Council Directive No. 85/611/EEC of 20 December 1985, as amended by Council Directive No. 88/220/EEC of 22 March 1988, Directive No. 95/26/EC of 29 June 1995 of the European Parliament and of the Council and Directive No. 2001/108/EC of 21 January 2002 of the European Parliament and of the Council (the Product Directive), regarding the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS).

The Directives up to and including that of 1995 are given effect by the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations (S.I. No. 211 of 29 May 2003) which amended and consolidated all previous Statutory Instruments governing UCITS.

Statutory Instrument No. 211 was then amended by S.I. No. 212, also of 29 May 2003, and S.I. No. 497 of 21 October 2003 in order to give effect to the Product Directive and the Management Directive respectively.

S.I. No. 497 was amended by S.I. No. 737 of 2003 , and the present Statutory Instrument further amends S.I. No. 497 by revoking Regulation 31(3), (which was inserted by S.I. No. 737).

The purpose of this S.I. is to require self-managed investment companies which were authorised prior to the coming into operation of S.I. No. 497 to comply with Regulation 13 of S.I. No. 497. In effect, it applies the operating rules and prudential rules set out in Articles 13b and 13c of Directive 85/611/EEC (as inserted by Directive 2001/107/EC) to such investment companies.

This Statutory Instrument comes into operation on 13 February 2007.

¹ O.J. No. L375/ of 31.12.85, p.3.

² O.J. No. L100 of 19.4.88, p.31.

³ O.J. No. L168 of 18.7.95, p.7

⁴ O.J. No. L41 of 13.2.02, p.35.

⁵ O.J. No. L41 of 13.2.02, p.20.