The UCITS V Directive is adopted
After the publication of the new CSSF Circular 14/587 on UCITS depositaries last week, it is now the European legislator’s turn to adopt new rules on UCITS depositaries. Indeed, the Council of the European Union has now formally approved the proposal for a directive of the European Parliament and of the Council amending Directive 2009/65/EC on the co-ordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) as regards depositary functions, remuneration policies and sanctions (the so-called UCITS V Directive).
The directive reflects lessons learned from a number of failures in the UCITS market that led to losses of assets by UCITS investors and aims at re-establishing investor confidence. As the Alternative Investment Fund Managers Directive (AIFMD) already aims at mitigating the negative consequences of such failures for investors of alternative investment funds, it became necessary to align both regimes and apply such protective rules to retail investors as quickly as possible.
The new framework aims at strengthening the protection of UCITS investors vis-à-vis the depositaries and the managers of the funds, through new sets of rules relating to the depositary functions, the remuneration policies and the administrative sanctions applying to UCITS managers when failing to comply with their obligations under the UCITS V Directive…
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Briefings from Arendt & Medernach
Luxembourg has now fully implemented the AIFMD. This will reinforce the country’s position as a global investment fund hub.
The CSSF has no objections to UCITS investing in China A-Shares using the Hong Kong-Shanghai Stock Connect platform.