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UCITS V Published in the Official Journal

AUTHOR(S): Joe Beashel, Anne-Marie Bohan, Gavin Coleman, Liam Collins, Dualta Counihan, Tara Doyle, Elizabeth Grace, Michael Jackson, Philip Lovegrove, Shay Lydon
PRACTICE AREA GROUP: Asset Management and Investment Funds, Private Equity Funds
DATE: 28.08.2014

The much discussed UCITS V Directive was published in the European Union’s Official Journal today, 28 August 2014.  UCITS V amends Directive 2009/65/EC on undertakings for collective investment in transferable securities (“UCITS”).  It will affect the existing regulatory framework for UCITS in three main areas, namely:  (i) the role of the depositary; (ii) remuneration; and (iii) sanctions.  In particular, UCITS V clarifies and strengthens the depositary function, in addition to aligning the UCITS legislation with certain aspects of the Alternative Investment Fund Managers Directive ("AIFMD").

Member states now have until 18 March 2016 to transpose UCITS V into national law.  UCITS V also requires the European Securities and Markets Authority to draft guidelines clarifying the exact scope of the UCITS V remuneration requirements and their practical application.  These guidelines will be preceded by a public consultation, which should take place over the coming months.

UCITS V will have a far-reaching impact.  According to statistics published by the European Fund and Asset Management Association, as at the end of 2013, there were over 35,000 UCITS funds with approximately EUR 6.9 trillion in assets and sold in 86 countries.  Moreover, these numbers are set to increase.  In a recent survey commissioned by Matheson and conducted by the Economist Intelligence Unit (the “EIU Survey”), 56% of the 200 managers surveyed predicted that their firms would, by 2016, have over $1bn in UCITS (by assets under management).  Ireland is a location of choice for UCITS funds, with 80% of Irish domiciled funds structured as UCITS. 

Matheson has produced a briefing note on key matters arising from UCITS V, which can be accessed here.  We have also published a series of fact sheets setting out the UCITS V provisions affecting depositaries, remuneration and sanctions on our dedicated UCITS V webpage which can be accessed here. The EIU Survey can be accessed here.

We would be happy to discuss any aspect of UCITS V with you further in detail and will continue to update the website as developments occur.

The Asset Management and Investment Funds Team at Matheson has particular expertise in all aspects of UCITS including UCITS platforms, UCITS ETFs, money market funds, structured UCITS, UCITS pursuing alternative or hedge fund strategies, and UCITS traditional long only equity and bond funds. Matheson contributes and makes submissions on behalf of industry at European level through our membership of the European Fund and Asset Management Association’s Working Group on UCITS, and our partner Shay Lydon co-chairs the Irish Fund Industry Association’s Working Group on UCITS.


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