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UCITS V

Welcome to our UCITS V page which sets out current information on UCITS V and surrounding issues. For the very latest information and advice on UCITS V, please feel free to contact one of our team.

About UCITS V

The UCITS V Directive (Directive) was published in the Official Journal on 28 August 2014 and became effective from 17 September 2014. Member states now have 18 months to implement the Directive which will come into force on 18 March 2018. There will then be a further “grandfathering” period of 24 months but only for those UCITS whose depositary is not compliant as at 18 March 2016 and such UCITS will not need to comply until 18 March 2018. 

The European Commission will then need to provide delegated regulations (Level 2) which drill down into finer detail. ESMA put out its first consultation on Level 2 with a closing date of 24 October 2014 (pdf).

Further consultation will follow. The Level 2 regulations are expected in the course of 2015. As with the AIFMD, it is likely the UK Financial Conduct Authority (“FCA”) and possibly HM Treasury will need to implement the Directive through changes to primary and secondary legislation and a number of aspects of the FCA’s Handbook.

There are three key areas addressed by UCITS V:

  • The role of the UCITS depositary and harmonising the rules which apply to them. In particular, the Directive defines the tasks and duties of the depositary, designates the legal entities which can be appointed and clarifies the liability of depositary in case assets in custody are lost or from improper performance of duties 
  • Rules to require UCITS management companies to maintain remuneration policies and practices which are consistent with sound and effective risk management for staff who have a material impact on the risk profile of the UCITS they manage 
  • Rules on sanctions which competent authorities can impose on the financial sector and in particular to harmonise the powers available to authorities across the European Union.

How Eversheds Sutherland can help with UCITS V

Gap analysis and transition plan

  • We can assist you to identify the key issues which need to be addressed in your business by providing a gap analysis of existing operational requirements against the new UCITS V requirements and assist in putting together a project plan within the relevant timing constraints.

Contracts

  • Eversheds Sutherland can assist you with the drafting and negotiation of contracts such as the new template depositary agreement.

International Funds Net

  • Our International Funds Net service can assist you with registration and passporting for UCITS.

Amendments to fund documents

  • UCITS V may require changes to be made to fund documents such as prospectuses, instruments and trust deeds and we can help you identify any changes required, draft appropriate wording, feed these through your range of funds and make any regulatory or client notifications as required. The likely impact of UCITS V on scheme documentation is analysed here (pdf).

Spotlight on:

International funds net

International Funds Net

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