MAKING THE MOST OF UCITS IV

have to produce frequent reporting to 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 imply a strong know-how in terms of transfer of assets. 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 the UCITS and newcits funds, but also with the more complex alternative products, to provide you with acurate advice from the definition of the target to reach to your fund protocol set up. Ideally it would accompany you at all the stages of implementation of your new product, including project management.

INVESTORS-RELATED ASPECTS On one hand, you will have to evaluate the risk to see your current in- vestors move to another structure at the time of re-domiciliation of your existing structure. On the other hand, you will have to assess the potential of new investors in your target structure. Tax risks should also be examined at investor and portfolio level. You will have to select the domiciliation of your future structure according to various criteria. Key questions you should ask yourselves are: •Which jurisdiction is the most suitable? For instance, Ireland could be the favourite jurisdiction to re-domicile Cayman funds if they have already their fund administration there. •What is the optimal structure to set up, taking into account marketing aspects, but also regulatory, legal and tax aspects? INVESTMENT POLICY One key issue will be to define the appropriate UCITS investment policy that respects both the law of the EU domiciliation country and the original spirit of your reference alternative strategy. If you decide to re-domicile your offshore fund, then you will have to confirm the eligibility of the existing investment policy to the UCITS rules. This preliminary task is complex and must be managed with a high level of accuracy. Besides, as you enter a more costly regulated environment, it may reduce returns as compared to the same strategy delivered in a non-UCITS fund. A cost/benefit analysis could be carried out. AUTHORISATION PROCEDURES You should keep in mind that UCITS are regulated structures requiring a full authorisation procedure before being launched, as the regulator of the country of fund domiciliation want to legitimately know“what is behind”. You will have notably to produce a prospectus, a KIID and constitutional documents for your UCITS fund. Once your UCITS launched, you will also

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 different scenarios that could bring added-value and efficiency to your whole structure and search for the best location/choice of providers for your Management Company, depositary function, fund administration and transfer agency.

Project management, risk management and reporting will be major issues to implement your UCITS servicing structure.

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