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29package of measures to improve the efficiency andcompetitiveness of these markets, to the benefit ofconsumers, mortgage lenders, and investors alike.Recent events both in the US and in Europe have shownthe economic and social importance of mortgage credit.Where possible and appropriate, the white paper alsodraws on the initial lessons to be learned from the recentturbulence in financial markets.In 2005, UEPC voiced concerns on the green paper thatpreceded the white paper and will examine whether arenewed reaction is necessary.IFRS (International Financial Reporting Standards)- AccountingAll listed EU companies (including banks and insurancecompanies) have been required to use IFRS since 2005.As the standards are part of European law, they and anysubsequent changes to them must be published in theOfficial Journal. Some of these standards have an impacton the activities of real estate developers.Moreover, in October 2007, UEPC sent a brief statementon the Commission communication concerning asimplified corporate environment in the areas ofcompany law, accounting, and auditing of financialstatements.REITsReal Estate Investment Trusts are an importantvehicle in the European market. UEPC will be monitoringwhether European authorities create a regulatoryframework, as has been suggested by other stakeholders.In Germany, an important point of contention with theGerman REIT-AG was that residential property couldnot be contributed to the REIT. Foreign REITs operatingin Germany were, however, able to do so. Homes hadbeen excluded on the basis of a socio-political discussion.Hedge FundsAt the May 2007 meeting, a discussion about the regulationof hedge funds was initiated. Hedge funds, withtheir low security and high gearing, can have a stronglynegative impact on national and international financialmarkets. Participants discussed whether it is necessaryto regulate hedge funds, as is advocated by UEPC.VAT & Reverse Charge MechanismIn the fight against VAT fraud, a debate has beenlaunched by a number of Member States on thepossibility of making substantial changes to the VATsystem. One of the options discussed is the introductionof an optional reverse charge mechanism.On 14 August 2007 the European Commission launcheda public consultation on this issue with the aim ofascertaining the views and opinions of businesses onadditional costs and/or benefits associated with theintroduction of an optional reverse charge mechanism.Interpretations of IFRSs are developed by theInternational Financial Reporting InterpretationsCommittee (IFRIC). Since 2007, UEPC has been closelyinvolved in the work of IFRIC. In November 2007 UEPCsent comments in relation to Draft Interpretation D21Real Estate Sales, whereupon UEPC was invited toattend the preparatory meetings as an observer.Since the reverse charge mechanism was rejected bya majority of participants at a subgroup meeting inSeptember 2007 in Brussels, the UEPC gave only briefopinion on the point.UEPC officially responded to the consultation paperentitled Possible Introduction of an Optional ReverseCharge Mechanism for VAT.