The European Commission said today it was unlikely to bring in major legislation to radically overhaul the regulation of cross-border mutual funds, although more minor changes can be expected.
The commission will publish its analysis of the funds industry in the summer.
"It will conclude that no case currently exists for wholesale changes to the existing legislation," Mr McCreevy told a financial industry conference in Dublin.
"Instead, the review will outline a number of steps that are envisaged to consolidate the existing UCITS framework. It will identify areas for short term action and structural issues which warrant further monitoring," McCreevy said.
The fund industry will be consulted by November before any decision is taken on how to amend the current framework, Mr McCreevy said.
Turning to credit rating agencies, McCreevy said that on balance, he felt the introduction of new regulation was not appropriate at this time. The commissioner has just received advice from a group of EU market watchdogs which recommended that credit rating agencies should be allowed to keep their own house in order, using a code of conduct agreed by global watchdogs.
"While we may well conclude that a voluntary code of conduct will suffice for the moment, we will keep the matter under continual review," Mr McCreevy said. "The rating agencies put issuers on watch. I want them to realise that it is they who are now on watch," Mr McCreevy added.
Mr McCreevy also expects to present a proposal to member states for discussion following European Court rulings on VAT on outsourced financial services which raised alarm in the industry.
The European Court of Justice ruled last month that some back-office activities outsourced by insurers were not exempt from value-added tax, which could undermine the trend among insurers to contract out services to save money.