MAKING THE MOST OF UCITS IV

You will have to produce a prospectus, a KIID and constitutional docu- ments for your UCITS fund. Once your UCITS is launched, you will also have to file frequent reporting with the regulator. As fund promoter, you will also need to demonstrate your know-how, ex- pertise and substance to the EU regulator. Furthermore, the UCITS fund manager will have to be authorised by the regulatory authority of the fund jurisdiction. TRANSFER OF ASSETS It should be noted that any re-domiciliation process will require extensive know-how in terms of transfer of assets from one depositary to the other, mainly if they are not part of the same group. It is strongly recommended that you find a partner sufficiently experienced to help you define the optimal product structure to set up and assist you in creating your own UCITS.This partner should have a great expertise both with UCITS and newcits funds, but also with the more complex alternative products, to provide you with acute advice from the definition of the target to reach to your fund set up. Ideally it would accompany you at all stages of implementation of your new product, including project management.

ferent scenarios that could bring added-value and efficiency to your whole structure, as well as research into the best location/choice of provider for your Management Company, depositary function, fund administration and transfer agency.

Project management, risk management and reporting will be major issues in the implementation of your UCITS servicing structure.

MANAGEMENT COMPANY Already having an EU Management Company for your existing non-UCITS funds, you could either beef-up your existing Management Company so that it becomes compliant within the UCITS environment, design a new UCITS IV compliant Management Company or appoint a UCITS compliant third-party Management Company having the substance, the staff and the adequate tools. Among the issues to examine are MiFID rules applying to all Manage- ment Companies as at 1st July 2011, new delegation arrangements, new monitoring tasks and reporting flows to implement. You will have to de- cide whether you intend to handle risk management and the compliance controls by yourselves or if you prefer to delegate these activities to an expert service provider, owing to the level of know-how they require. Taxation will also be a key issue. New tax risks and additional complexity could emerge if the Management Company and the service providers are not located in the country of the UCITS but it should be balanced with the benefits of the increased flexibility gained through a consolidated cross- border management business model.

Servicing structure strategy

In addition to your product (re-)structuring strategy, you will have to de- fine your servicing structure strategy. It will require the analysis of the dif-

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