UCITS
Overview:
AIMA actively monitors and advocates on a variety of initiatives that will affect the operations of our members who manage UCITS funds. The EU directive on undertakings for collective investment in transferable securities (UCITS) is the main European framework covering collective investment schemes.
Current work:
On 2 August 2021, the EU's Cross-Border Distribution of Funds (CBDF) regime came into effect. AIMA, together with AIMA Sponsoring Partners KPMG and Clifford Chance, have developed an implementation guide to assist AIFMs in addressing the new compliance requirements introduced under the CBDF Directive and CBDF Regulation. This implementation guide can be accessed in the UCITS Resources tab below.
The European Commission is currently considering the scope and nature of the changes to the AIFMD that they will propose later this year, currently expected to be published in Q4 2021. The Commission's earlier consultation paper also included questions on revisions to the UCITS framework, focusing on:
- the possibility of a single licence for AIF and UCITS managers;
- whether (and which) elements of the Level 2 rules on delegation in AIFMD should be applied to UCITS;
- harmonised metrics for leverage calculation; and
- reporting on the use of liquidity management tools.
Upcoming actions:
HM Treasury has announced that the current exemption for UCITS funds from the requirements of the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation will be extended by five years to 31 December 2026.
European Commission has published a legislative package to extend the end of the UCITS exemption from the PRIIPs Regulation from 1 January 2022 to 1 July 2022. The Council compromise put forward by the Slovenian Presidency extends the KID exemption by 12 months (until 1 January 2023) instead of 6 months, as proposed by the Commission.
(Last updated: 20 September 2021)
