MAKING THE MOST OF UCITS IV

Introduction

to only present the most credible or most common scenarios. However, we are obviously more than willing to discuss any other scenario that interests you. The brochure also highlights some major implementation considerations and points of attention.

ged under UCITS IV, and no EU passport for the depositary has been introduced. As under UCITS III, the depositary shall be established in the UCITS home Member State. However, fully aware that the requirements relating to UCITS deposi- taries are an important building block within the UCITS framework for ensuring a high level of investor protection across all Member States, the European Commission intends to present in 2011 a new legisla- tive proposal to update, further harmonise and strenghten the current framework applicable to UCITS depositaries. In this context, the Euro- pean Commission issued a consultation paper on the UCITS depositary function and on UCITS managers’ remuneration on 14 December 2010, with the objective, in particular, to better clarify the UCITS depositary function and ensure consistency between the legislation applicable to the depositaries of UCITS and that applicable to the depositaries of alternative investment funds (cf AIFM Directive as approved by the Eu- ropean Parliament on 11 November 2010). The conclusions from this consultation will serve as a basis for the Commission to review the UCITS Directive in 2011 (UCITS V). These developments are obviously being followed in a very close manner by CACEIS. We trust you will find this publication both relevant and informative. Our Business Development Managers & Engineers, Product Managers, Legal and Fund Structuring experts remain at your disposal for further information and assistance.

New challenges for the fund depositary

The UCITS IV directive brings the fund depositary into the spot- light since under each key measure it plays the role of guarantor for the protection of investors’ interests. It is also a principal information source for the fund Management Company as well as for the Mem- ber States’ financial authorities to ensure compliance with the direc- tive’s requirements. It will undoubtedly be a key player in the more complex UCITS IV environment, especially for cross-border master-feeder structures (e.g. information duties, report of master ir- regularities, etc.), fund mergers (e.g. control of the merging and recei- ving UCITS) and the Management Company passport (e.g. agreement with the Management Company regulating flow of information and procedures to perform functions). All the more as it may provide Ma- nagement Companies and fund promoters with a valuable “one-stop solution” for custody, administration and operational support tools.

It must be stressed that the liability regime of the depositary as regards the safe-keeping and supervision of the fund’s assets remains unchan-

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