EUROPE: ESMA Publish Guidelines for competent authorities and UCITS management companies

Monday September 29 2014

The European Securities and Markets Authority (ESMA) have published guidelines for competent authorities and Undertakings for Collective Investment in Transferable Securities (UCITS) management companies.

These guidelines apply to competent authorities designated under Article 97 of the UCITS Directive, UCITS management companies and UCITS taking the form of self-managed investment companies.

On 18 December 2012 ESMA published the guidelines on ETFs and other UCITS issues. The original guidelines started to apply on 18 February 2013 with their publication on ESMA’s website. The transitional provisions of those guidelines ceased to have effect on 18 February 2014. Subsequently the present version of the guidelines was issued by ESMA which contains modified provisions on diversification of collateral.

The purpose of these guidelines is to protect investors by providing guidance on the information that should be communicated with respect to index-Tracking UCITS and UCITS ETFs together with specific rules to be applied by UCITS when entering into over-the-counter financial derivative transactions and efficient portfolio management techniques. Finally, the guidelines set out criteria that should be respected by financial indices in which UCITS invest.

Click on the above link for further details.