UCITS IV features
UCITS IV is quite a broad Directive, the main features of which are as follows:
Key Investor Information Document (KIID)
Consists of a two-page document that will:
- Replace the simplified prospectus
- Simplify and standardise the content of information to provide investors with key and predefined set of information. KIID will be clear, brief, not technical and transmitted in a durable medium or electronically
- KIID has to be translated into the local language of the country of distribution
Management company passport
- Will allow UCITS to be managed by a management company authorised and supervised in a Member State other than its home country of domiciliation
- Will enable consolidation of management companies and a reduction of costs
Master-feeder structure
- Each feeder fund is required to invest at least 85% of its assets in one master UCITS
- The feeder and master UCITS must enter into a legally binding agreement containing several administrative arrangements
- Service providers to the structure (if different) would need to formalise an agreement in respect of the organisation and processing of the master/feeder structure
Cross-border mergers
- Provides a harmonised framework for cross-border mergers of all types of UCITS funds, also applicable to domestic mergers
- Removes requirement of consent of all investors for cross border mergers
Simplified notification procedure
- Alleviates existing administrative barriers to the cross border marketing of UCITS : the marketing of the fund can begin immediately after the transmission of notification to the host country regulator by home regulator (acting as “single” point of contact)
- Transmission from the home regulator to the host regulator within 10 working days
- The host Member State has 5 days to revert to the FR to request additional information on the application file
- Within 24 hours, the FR has to revert to the host Member State with the requested additional information
- Most of the documentation may be provided in English only
- Clear, non-ambiguous local rules to be made available by local regulators
Please do not hesitate to contact our UCITS IV team with any queries on the above.