PS16/2: Implementation of the UCITS V Directive

In this Policy Statement (PS) we set out Handbook changes affecting managers and depositaries of UCITS and alternative investment funds (AIFs).

Why are we issuing this policy statement?

In Part I of CP15/27 UCITS V Implementation and other changes to the Handbook affecting investment funds we consulted on proposed rules and guidance for implementing UCITS V Directive requirements, in particular:

requirements applicable to management companies, including remuneration principles and transparency obligations towards investors
changes to the regime for depositaries, including eligibility criteria and capital requirements for firms acting as depositaries of UCITS

In this PS we set out the final Handbook changes implementing the requirements above and give our response to the feedback received during the consultation period.

In this PS we set out the final rules for managers of non-UCITS retail schemes (NURS) we also consulted on in Part I of CP15/27. We also outline some final guidance for depositaries of AIFs, which we consulted on in our March 2015 quarterly consultation paper CP15/8.

PS16/2 : Implementation of the UCITS V Directive[1] [PDF]

Who will this affect?

This PS will affect:

UCITS management companies and alternative investment fund managers (AIFMs)
depositaries and custodians of UCITS and AIFs
representative trade bodies, business advisers and consultants, and other advisers involved in or linked to the fund management industry in the UK

What are the next steps?

We must implement UCITS V by 18 March 2016, so the rules and guidance will come into force on this date. The Handbook changes affecting managers and depositaries of AIFs will also take effect on this date. However, there are transitional provisions applying to some of the final requirements which run for up to two years, starting from 18 March 2016.

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First published: 02/02/2016 Last updated: 02/02/2016