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UCITS V - Seize the evolution

UCITS V challenges

UCITS V - Seize the evolutionThe European Commission published on July 3rd a proposal for regulations and administrative provisions in respect of depositary functions, remuneration policies and sanctions related to UCITS.

With UCITS V the European Commission proposes a new depositary regime – the challenge will be ensuring that this “modernisation” strikes an appropriate balance.

In its impact assessment which accompanied the 2009 consultation document, the Commission highlighted that national divergences in the depositary regime could be the origin of significant legal uncertainty and could lead to different levels of investor protection across the EU.

Setting up and running a sub-custodian network, which has always been challenging, has become increasingly complex, particularly as there is no harmonised approach among Member States regarding the conditions applicable to this delegation and its on-going monitoring.

It should be noted that these rules have been included in the Directive on Alternative Investment Fund Managers (AIFMD) which governs alternative investment funds.

The proposed rules governing remuneration will ensure compensation of senior management, risk and controls functions is consistent with the UCITS risk management and profile.

Regarding the harmonised sanctions regime, member states will have to compile a list of minimum penalties for three types of offences (1) fund authorisation (2) fund operational (3) reporting rules. The penalties shall range from a public warning to a temporary suspension and fines.

Our UCITS V expertise

Deloitte has a global regulatory, compliance and tax knowledge in the investment management area, especially important in designing and building your UCITS operating model and processes. Luxembourg is recognised as the EMEA Centre of Excellence for Investment Management Consulting within the Deloitte network .

Our large and extensive market experience and exposure through previous and on-going engagements with most of the largest fund service providers as well as asset managers is a further asset.

Our methodologies and knowledge management center have always a tremendous accelerator role in projects we engage in.

Not least, our team of experienced investment management consulting professionals with recognised industry experts and Deloitte leaders at your service can help you to meet the challenges and opportunities brought forward by UCITS V.

Contacts

  • Vincent Gouverneur
    Partner - EMEA Investment Management Leader
  • Johnny Yip
    Partner - Investment Funds & Hedge Funds Leader
  • Lou Kiesch
    Partner - Regulatory Consulting
  • Benjamin Collette
    Partner - Strategy & Corporate Finance Leader
  • Simon Ramos
    Directeur - Regulatory Consulting

Focus on

  • The changing role of custodian banks
    There has been much public debate around initiatives aimed at reforming the European internal market and the global arrangements in the wake of the financial crisis.
  • EMEA Centre for Regulatory Strategy - European Commission proposals on a Revision of the UCITS V
    European Commission proposals on a revision of the Undertaking for Collective Investment in Transferable Securities. Key changes and impact on firms.

More Learn more

  • Press article: The challenge of cross-border distribution and the registration of UCITS funds
    In an effort to gather assets under management fund promoters have for many years been registering their European investment funds for sale in other countries.
  • Press article: UCITS vs non - UCITS, quels sont les facteurs à considérer ?
    Une année après la crise de septembre 2008 l’industrie des fonds d’investissement reste ancrée autour du choix de l’investissement collectif.

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