UCITS V

The UCITS directives of 2009 is amended to improve investor confidence in UCITS. The amendment introduces new rules on UCITS depositories, general remuneration principles that apply to fund managers as well as a common minimum set of powers for all EU regulators to sanction any breaches of UCITS funds and their managers. This can increase protection and transparency for all UCITS investors. UCITS V also aligns the definitions, requirements and tasks of depositories with AIFMD, bringing the same level of investor protection of professional investors to retail fund investors. In the Netherlands, UCITS V has been implemented in Act on Financial Supervision through an Implementation Act on 18 March 2016.

2019
2020
2021
2022
2023
2024
4
1
Implementation / enforcement 08/2009 - 07/2012
2
Discussion / consultation 07/2012 - 08/2014
3
Implementation / enforcement 08/2014 - 03/2016
4
In effect 03/2016 - 04/2099

STATUS
UCITS V is currently in effect

The new UCITS V requirements have a significant impact on UCITS depositories and asset managers managing UCITS funds. Multiple existing depositories are to be replaced by appointing a single depository under the new eligibility criteria and compliance requirements. Contractual agreements between depositories and asset managers require revisions to meet the new requirements. Asset managers are required to bring remuneration policies in line with UCITS V. In the new sanctions regime of UCITS V, fines can amount up to a maximum of €5.000.000 for legal persons or € 1,000,000 for natural persons.

Further information:
European Commission: UCITS

author
Ivo Habets Senior Manager
Categories: Financial Market Organisation