FRANCE: AMF publishes UCITS V guide for Asset Management Companies

Thursday March 17 2016

In the run-up to the transposition into French law of Directive 2014/91/EU of 23 July 2014, also known as “UCITS V”, the Autorité des Marchés Financiers (“AMF”) has issued a guide for asset management companies to provide answers to the main questions concerning the impact of the Directive and its transposition on their business.

The guide incorporates factors that could change in line with the final legislative and regulatory provisions after transposition as well as level 2 and 3 measures stemming from the Directive. It may be updated and added to in due course.

The guide specifically addresses:

• The function of the depositary, notably in terms of its role and responsibilities and investor protection against the depositary’s insolvency;
• Asset management company remuneration policies; and
• Sanctions to which asset management companies may be liable.

UCITS V has to be transposed into French law by 18 March 2016, and the new rules emerging from transposition will take effect immediately on that date.

A delegated regulation, a level 2 text intended to implement the Directive and published on 17 December 2015, is currently subject to rights to object by the European Parliament and Council. The delegated regulation is directly applicable and should not enter into force before the autumn of 2016.

Click on the above link for further details