ARTICLE
30 July 2014

Final Adoption Of The UCITS V Directive

W
Wildgen

Contributor

Wildgen logo
Founded in 1923, the Wildgen business law firm is one of the most renowned legal practices in Luxembourg. A full-service independent law firm, Wildgen focuses its activities on company law, banking and financial law, funds and taxation. It has grown steadily, with a long and solid tradition in cross-border transactions and an extensive international network of specialists and consultants.
A purpose of the UCITS V Directive is to align the UCITS regime with the depositary rules and rules on remuneration and sanctions provisions under the existing Directive.
European Union Finance and Banking

On 23 July 2014 the Council of the European Union has formally approved the proposal for a directive of the European Parliament and of the Council amending Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities as regards depositary functions, remuneration policies and sanctions (the "UCITS V Directive").

The UCITS V Directive focuses on three main areas:

  1. a new depositary regime which includes a clarification of depositary eligibility, duties, responsibilities and liabilities, and a set of rules under which tasks and responsibilities can be delegated — mainly focusing on the sub-custodian network;
  2. rules governing remuneration policies of UCITS managers that shall be applied to key members of the UCITS managerial staff; and
  3. the harmonisation of the minimum administrative sanctions regime across member states.

One of the purposes of the UCITS V Directive is to align the UCITS regime with the depositary rules and rules on remuneration and sanctions provisions under the existing Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on alternative investment fund managers, the so-called AIFMD.

The UCITS V Directive shall enter into force 20 days after the date of publication in the EU's Official Journal. EU Member States will then have 18 months from that date to transpose it into national law, and depositories will be given an additional 24-month transition period after the transposition deadline.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More