European asset management firms will soon be able to market a greater variety of mutual funds throughout the European Union. While they currently can sell only equity and bond mutual funds across the EU, by the middle of 2003 they will also be able to sell money market funds, fund-of-funds, index tracker funds and funds that use derivatives.
In Europe, only products deemed Undertakings for Collective Investments in Transferable Securities (UCITS) have been granted an EU "passport" that allows them to be sold across country borders. Until now, only equity and bond mutual funds have been given such a status. All other funds can only be marketed and sold within the country in which they are domiciled.