EUROPE: European Parliament and Council back Commission proposal on UCITS V

Wednesday February 26 2014

The European Parliament and Council have backed the European’s Commission’s proposal to strengthen the rules for Undertakings for Collective Investment in Transferable Securities (UCITS). These new rules will increase the level of protection for UCITS investors.

Key elements of the UCITS V outline din the agreement include;

• Strengthening of the rules on eligible entities that can act as a depositary.
• UCITS assets will be protected in the event of insolvency of the depositary through clear segregation rules and safeguards provided by the insolvency law of the Member States.
• The depositary will be liable for any loss of UCITS assets held in custody.

In addition, a harmonised framework of remuneration policies for all risk-takers involved in UCITS funds have been introduced in order to encourage sound, effective risk management.

Click on the above link for more details.