31985L0583

31 . 12 . 85 No L 372 /39 Official Journal of the European Communities

COUNCIL DIRECTIVE of 20 December 1985 amending the Directive of 11 May 1960 on the implementation of Article 67 of the Treaty

( 85 / 583 /EEC)

THE COUNCIL OF THE EUROPEAN COMMUNITIES , uniform safeguards, makes it possible to remove the restrictions on the free movement of the units of such Having regard to the Treaty establishing the European undertakings ; whereas, moreover, retention of those Economic Community, and in particular Article 69 restrictions would substantially reduce the effect of those thereof, provisions of that Directive which relate to the marketing of the units of such undertakings ; Having regard to the proposal from the Commission, Whereas, pursuant to the subparagraph of Article 229 of submitted after consultation of the Monetary the Act of Accession of 1985 , the Portuguese Republic Committee , may postpone until 31 December 1990 the liberalization of the transactions set out in List B in Annex I to the Whereas the Council Directive of 11 May 1960 for the Directive of 11 May 1960 concerning the acquisition of implementation of Article 67 of the Treaty ('), as foreign securities by residents ; whereas the Portuguese amended by Directive 63 /21 /EEC (2), excluded Republic should be able to postpone to the same date the transactions in the units of unit trusts from the capital liberalization pursuant to this Directive of transactions of movements referred to in Article 2 thereof and set out in the same kind in the units of foreign UCITS carried out List B of Annex I thereto and included them in the by residents, capital movements referred to in Article 3 thereof and set out in List C of Annex I thereto ; HAS ADOPTED THIS DIRECTIVE : Whereas Council Directive 85 /61 1 / EEC of 20 Article 1 December 1985 (3) has coordinated the laws, regulations and administrative provisions regarding certain under­ Annex I to the Directive of 11 May 1960 is hereby takings for collective investment in transferable securities amended as follows : (UCITS); whereas that coordination, which provides investors with more effective protection and with more 1 . The following shall be substituted for List B :

' LIST B

Capital movements referred to in Article 2 of the Directive

Items of nomenclature

Operations in securities : (a) Securities dealt in on stock exchanges Acquisition by non-residents of domestic securities and repatriation of the proceeds of the IV A liquidation thereof — excluding units of unit trusts not governed by Directive 85 /61 1 /EEC Acquisition by residents of foreign securities and use of the proceeds of the liquidation thereof IV B — excluding bonds issued on foreign markets and denominated in national currency — excluding units of unit trusts not governed by Directive 85 /61 1 /EEC

o OJ No 43 , 12 . 7 . 1960 , p. 921 / 60 . (2) OJ No 9, 22 . 1 . 1963 , p . 62 /63 . O OJ No L 375 , 31 . 12 . 1985 .

No L 372 / 40 Official Journal of the European Communities 31 . 12 . 85

Items of nomenclature

(b) Securities not dealt in on stock exchanges

Acquisition by non-residents of units of domestic undertakings for collective investment in transferable securities governed by Directive 85/61 1 /EEC and repatriation of the proceeds of the liquidation thereof IV C Acquisition by residents of units of foreign undertakings for collective investment in transferable securities governed by Directive 85 /61 1 /EEC and use of the proceeds of the liquidation thereof IV D

(c) Physical movements of the securities mentioned in (a) and (b) IV E in conjunction with IV A and IV C, IV B and IV D

The use of the proceeds of the liquidation of assets abroad belonging to residents must be permitted at least within the limits of the obligations as regards liberalization accepted by Member States .'

2 . The following shall be substituted for the section on 'Operations in securities' in List C :

Items of nomenclature

'Operations in securities : (a) Securities dealt in on stock exchanges Acquisition by non-residents of units of domestic unit trusts not governed by Directive 85 / 61 1 /EEC and repatriation of the proceeds of the liquidation thereof IV A Acquisition by residents of units of foreign unit trusts not governed by Directive 85 /61 1 /EEC and use of the proceeds of the liquidation thereof IV B Acquisition by residents of foreign bonds issued on foreign markets and denominated in national currency IV B 3 (i) (b) Securities not dealt in on stock exchanges Acquisition by non-residents of domestic securities and repatriation of the proceeds of the liquidation thereof IV C — excluding units of domestic undertakings for collective investment in transferable securities governed by Directive 85 /61 1 / EEC Acquisition by residents of foreign securities and use of the proceeds of the liquidation thereof IV D — excluding units of foreign undertakings for collective investment in transferable securities governed by Directive 85 /61 1 / EEC (c) Physical movements of the securities mentioned in (a) and (b) IV E in conjunction with IV A and IV C, IV B and IV D'

Article 2 they raise and which operate on the principle of risk-spreading, and The Explanatory Notes in Annex II to the Directive of 11 May 1960 shall be supplemented as follows : — the units of which are, at the request of holders, under the legal, contractual or statutary conditions governing them, repurchased or 'Undertakings for collective investment in transferable redeemed, directly or indirectly, out of those securities ( UCITS) undertakings' assets . Action taken by a UCITS to ensure that the stock exchange value of its units does not significantly vary from their net asset value shall be regarded as equivalent to such Undertakings repurchase or redemption.

Such undertakings may be constituted according to — the sole object of which is the collective law either under the law of contract (as common investment in transferable securities of the capital funds managed by management companies) or trust

31 . 12 . 85 Official Journal of the European Communities No L 372/41

law (as unit trusts) or under statute (as investment The Portuguese Republic may postpone until 31 companies). December 1990 the liberalization of the acquisition by­ residents of the units of foreign collective investment For the purposes of this Directive "common funds" undertakings covered by Directive 85/61 1 /EEC. shall also include unit trusts .' Article 4

This Directive is addressed to the Member States . Article 3 Done at Brussels , 20 December 1985 . The Member States shall bring into force the measures For the Council necessary for them to comply with this Directive by 1 The President October 1989 at the latest and shall forthwith inform the Commission thereof. R. KRIEPS