UCITS V is making steady, if slow, progress. A press release by the European Commission informs us that both the European Parliament and the European Council have reached agreement on the wordage of UCITS V (although this does not mean that it has been formally adopted by both parties – that will be the next stage).
The agreement relates to a proposal issued in July 2012 to amend the current UCITS IV (2009/65/EC); Regulatory Roundup 42 contains an article on UCITS V with a link to the EC proposal.
The press release advises that key elements of the agreement reached include:
- Tightening the rules on which entity can act as a depositary
- Enhanced protection of UCITS assets in the event of insolvency of the depositary
- Strengthening the depositary’s liability for the loss of UCITS assets with investors always having the right of redress against the depositary
- Remuneration policies to apply for all risk takers – the policies will be in line with those in the AIFMD
- Strengthening the existing regime to ensure effective and harmonised administrative sanctions.
