The UCITS V Directive was published in the European Union’s Official Journal on the 28th August 2014.
The Directive, amending Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), focuses on three main areas:
(i) duties, delegation, eligibility and liability of the Depositary;
(ii) remuneration policy of senior management, risk takers and control functions; and
(iii) harmonisation of the sanction policy regime across European Member States, including the strengthening of cooperation to improve the effective detection of breaches of regulatory requirements.
The MFSA has recently announced that it will be initiating the implementation process of the UCITS V Directive as soon as this is published in the Official Journal. The Directive will be mainly transposed by way of changes to the Investment Services Rules and the MFSA will be consulting the industry in the usual manner.