EUROPEAN UNION: ESMA publishes updated Q&A on the UCITS Directive

Tuesday April 5 2016

The European Securities and Markets Authority (ESMA) has published an updated questions and answers document (Q&A) on the application of the Undertakings for the Collective Investment in Transferable Securities Directive (UCITS).

The Q&A includes a new question and answer concerning whether a UCITS can invest in a UCITS feeder fund. ESMA’s advice is that as UCITS feeder funds have to invest at least 85% of their net assets in their UCITS master fund, another UCITS cannot invest in a UCITS feeder fund.

The purpose of the Q&A document is to promote common supervisory approaches and practices in the application of the UCITS and its implementing measures.

Click on the above link for further details.