UCITS IV EN

What to expect from the revision of the UCITS directive?

The UCITS IV directive will have noticeable consequences for everyone regarding information and will contribute to better cooperation between the regulators and the European authorities in charge. Will it yield the expected results in terms of cross-border distribution and economies of scale? Without doubt, the simplification of the notification procedures is a positive step forward and it is more than likely that the management companies will make broader use of these new possibilities.This confirms one of the top priorities of CACEIS’s offer, which is widely recognised for its know-how in providing distribution support, taking advantage of its presence in Luxembourg and Ireland. The cross-border master-feeder system also looks promising since it uses known techniques and can contribute to a better use of the strengths and assets of the different European financial centres as well as the different players within the fund promoters/producers/distributors groups.The advice required from the CESR regarding the future Level 2 measures however confirms that it will be difficult to define a system where responsibilities are clearly identified and balanced between the different players. The professionals however are less enthusiastic regarding the potential effects of the clauses in terms of cross-border fund mergers.Within this field, due to a lack of European harmonisation, the planned information obligations would still be restrictive and the tax impact of these operations would still represent an important obstacle. Finally, the European passport granted to management companies should lead to a differentiation of players through their service offers. In this context, the professionalism and international implementation of CACEIS are two major assets for the strategic support of our clients.

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