Proposed resolution (February, 2014):

Change 12.2.2.5 [over.match.copy] paragraph 1 as follows:

...the candidate functions are selected as follows:

• The converting constructors (11.4.8.2 [class.conv.ctor]) of T are candidate functions.

• When the type of the initializer expression is a class type “cv S”, the non-explicit conversion functions of S and its base classes are considered. When initializing a temporary to be bound to the first parameter of a constructor that takes a where the parameter is of type “reference to possibly cv-qualified T” as its first argument, and the constructor is called with a single argument in the context of direct-initialization of an object of type “cv2 T”, explicit conversion functions are also considered. Those that are not hidden...