Reuters is reporting that EU market regulators are to allow hedge fund tracking indexes to be included on cross-boarder funds. There are, however, to be stringent rules placed upon them.
The Committee of European Securities Regulators last year refused to recommend such indexes for inclusion in EU-regulated funds known as UCITS to broaden their appeal and encourage more saving.
Undertakings in Collective Investments In Transferable Securities (UCITS), are seen as the “gold standard” of open-ended mutual funds, offering strong investor protection.