Key provisions of UCITS—depositaries
Produced in partnership with Macfarlanes LLP
Key provisions of UCITS—depositaries

The following Financial Services practice note Produced in partnership with Macfarlanes LLP provides comprehensive and up to date legal information covering:

  • Key provisions of UCITS—depositaries
  • EU Legislative background to UCITS depositaries
  • UK implementation
  • Requirement for a depositary
  • Who can act as a depositary in the UK?
  • The functions of a depositary
  • Safekeeping of financial instruments
  • Safekeeping of all other assets
  • Cash monitoring
  • Oversight
  • More...

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

This Practice Note considers the role of depositories of UCITS funds (ie open-ended collective investment schemes which are undertakings for collective investment in transferable securities) and the provisions of Directive 2009/65/EC (the UCITS Directive) as amended by Directive 2014/91/EU (UCITS V) and UK implementing measures (such as those in the Financial Conduct Authority (FCA) Handbook). It examines the obligations and requirements of a depositary, who can act as a depositary, liability, and delegation restrictions.

EU Legislative background to UCITS depositaries

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).

The requirements relating to depositaries are set out in Articles 22–26b of the UCITS Directive. In addition, Directive 2010/43/EU implementing the UCITS Directive as regards organisational requirements, conflicts of

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