ESMA’s new UCITS guidelines
New requirements to increase transparency and mitigate risk
Published December 2012
ESMA’s new guidelines on ‘ETFs and other UCITS issues’ are now finalised and will take effect in February 2013. The comprehensive set of guidelines will impact not only UCITS ETFs and index-tracking UCITS. They will also affect UCITS generally with respect to investing in financial indices, using financial derivatives and efficient portfolio management (EPM) techniques.
Key impacts include new criteria for collateralised transactions, stricter investment rules, new information disclosures and the return of profits from net revenue sharing arrangements.
UCITS management companies should consider a range of actions, depending on their activities, to ensure they are in compliance with ESMA’s new guidelines.
Read the briefing paper on ESMA’s guidelines