Cross-Border Distribution of UCITS

A CACEIS PRODUCT DEVELOPMENT PUBLICATION - 2011

CHALLENGES & OPPORTUNITIES

Translation requirement in local language

Timing to obtain initial regist.

Information requirement at first registration

Local agent requirement

Initial registration & annual fees

All documents to be submitted in the original language + in Spanish except for the UCITS certificate (sworn translation)

• Original version of latest full & simplified prospectus with visa stamp • Original version of latest UCITS Certificate • Self-certified notarised copy of latest articles of incorporation • Copy of latest annual & semi-annual reports • Appointment by the fund or the management company of a contact person with CNMV to act as representative of the fund in order to submit the information by means of CIFRADOC system • Appointment of a contact person among the Spanish distributors for the tax and statistical reporting

• Initial reg.: 0.14‰ on the volume estimated to be commercialised in Spain subject to minimum fees as determined by the CNMV (EUR 1,760.21 in 2011) • No annual fee

One distribu- tor must be designated to act as repre- sentative of the fund

Max 2 months

Spain

• Initial reg.: GBP 600 per single UCITS and GBP 1,200 per umbrella structure • Annual fee:

• Self-certified copy of latest full & simplified prospectus with visa stamp • Self-certified copy of UCITS Certificate • Self-certified copy of latest constitutional documents • Self-certified copy of latest annual & semi-annual reports • Signed notification letter

All documents to be submitted in the original language + in English

UK Repre- sentative and Paying Agent

Max 2 months

UK

GBP 560 for 1-2 sub-funds GBP 1,400 for 3-6 sub-funds GBP 2,800 for 7-15 sub-funds GBP 6,160 for 16-50 sub-funds GBP 12,320 for >50 sub-funds

• FSA reference number of the distributor • Additional information for UK investors

• Latest full & simplified prospectus with visa stamp • UCITS Certificate • Copy of constitutional documents • Latest annual & semi-annual reports • Proof of fees payment • Additional information/Addendum for Shareholders • Details of UCITS (Annex III-A part A) • Details of marketing arrangements (Annex III-A part B) • Annex III-C • Copy of Centralising Agent agreement

Max 2 months

Centralising Agent

• Annual fee: EUR 2,000 for each sub-fund

France

Yes

3.1

Source: CACEIS, 2011

As at 1st July 2011, funds will still require host country approval to be distributed cross-border according to Article 93 of the recast UCITS Directive but UCITS IV will introduce a simplified notification procedure, designed to increase cross-border registration efficiency, streamline the cross-border authorisation process across EU Member States and provide a shorter time to market, from 2 months to 10 working days. However, it should be noted that asset managers will still have to comply with local marketing and distribution laws in the host Member State. As such, they might have to cope with various local distribution requirements if they intend to market their funds in several countries in Europe: Mandatory translation of KIIDs (Key Inves- tor Information Documents) into the language(s) of each country of distribution, appointment of local agents in some countries of distribution, payment of annual fees for registration, etc. As distribution spreads beyond Europe, the issue of fund registration is even more complex; The demand from Asia and Latin America remains extensively constrained by local regula- tions. Thus, Asian investors buying Luxembourg or Ireland domiciled funds are mainly located in Singapore, Hong Kong and Taiwan while Latin American investors are mainly located in Chile

As at 1st July 2011, the UCITS IV Directive should considerably streamline the notification process for cross-border fund sales in the European Union and reduce costs and marketing delays for asset managers.

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