European Union Internal Market Commissioner Charlie McCreevy is expected to propose uniform new rules regarding depositories for undertakings in collective investments in transferable securities (UCITs), the European Commission’s version of mutual funds.

Besides leveling the playing field for requirements among all European nations, the new rules would disallow investment firms from permitting a sub-custodian bank to hold assets, rather than a depository, since sub-custodians’ obligation to return assets is not as stringent.

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