Key provisions of UCITS—depositaries
Key provisions of UCITS—depositaries

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Key provisions of UCITS—depositaries
  • Legislative background to UCITS
  • UK implementation
  • Requirement for a depositary
  • Who can act as a depositary?
  • Delegation
  • Liability
  • Obligations
  • Depositary agreement

BREXIT: The UK is due to leave the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018. This has an impact on this Practice Note. For further guidance on the impact of Brexit on UCITS, please see Practice Note: Impact of Brexit: UCITS—quick guide.

Legislative background to UCITS

Undertakings for collective investment in transferable securities (UCITS) are open-ended collective investment schemes which comply with Directive 2009/65/EC on the co-ordination of laws, regulations and administrative provisions relating to UCITS (the UCITS Directive, also known as UCITS IV) as amended by Directive 2014/91/EU (UCITS V). UCITS V was published in the Official Journal (OJ) on 28 August 2014 and came into force on 17 September 2014, with EU Member States transposing the rules into national law by 18 March 2016.

UCITS V amends existing provisions of the UCITS Directive. The aim of UCITS V was to bring the UCITS regime into line with the Alternative Fund Managers Directive 2011/61/EU (AIFMD) on remuneration and depositary rules and introduce a range of corresponding measures: it clarifies the depositary role, introduces rules on remuneration policies to be applied to key members of the UCITS management company’s staff and harmonises minimum administrative sanctions for infringements of the UCITS rules.

In September 2014, the ESMA issued its first consultation paper on its technical