Ucits index requirements tlbtsuu

Ucits index requirements

11.11.2020

Muntz22343

The Undertakings for the Collective Investment in Transferable Securities (UCITS) is a regulatory framework of the European Commission that creates a harmonized regime throughout Europe for the management and sale of mutual funds. UCITS funds can be registered in Europe and sold to investors worldwide using unified regulatory A UCITS that proposes to use a financial index for which there is no requirement to submit an index certification should state, when making the application for authorisation to the Central Bank, that such indices meet the regulatory requirements. Meaning of "managed in reference to a benchmark index" for a UCITS. According to ESMA, "managed in reference to a benchmark index" for a UCITS means that the index plays a role in the management of the UCITS, for example, in the explicit or implicit definition of the portfolio’s composition and/or the UCITS’ performance objectives and measures. A UCITS that proposes to use a financial index for which there is no requirement to submit an index certification should state, when making the application for authorisation or approval to the CBI

(1) 13This section applies to an ICVC, an ACD, an authorised fund manager17 of an AUT or ACS and17 a depositary of an ICVC, AUT or ACS17 where such ICVC, AUT or ACS17 is a UCITS scheme, in accordance with COLL 5.2.2 R (Table of application).

EFAMA reply to ESMA discussion paper on ETFs & Structured UCITS prospectus. Such requirements should apply to all index-tracking UCITS. The above requirements for the organisation, management and oversight of UCITS funds and hedge fund strategies, as long as such index meets the UCITS criteria. In order to deal with any such request, we will require evidence from you that you are the individual in respect of whom the request is made or a person permitted

III. Index-tracking UCITS 1. The prospectus of an index-tracking UCITS should include: a) A clear description of the index including details of its underlying components. In order to avoid the need to update the document frequently, the prospectus can direct investors to a web site where the exact composition of the index is published.

Jan 10, 2020 Accordingly, as part of the fund approval process, a UCITS will only be required to confirm that a financial index meets the CBI's regulatory

Is the index a representative benchmark? 1. The index measures the performance of a representative group 2. It is revised and rebalanced periodically 3. Underlyings are sufficiently liquid (possiblity to replicate it if necessary) Is it published in an appropriate manner? 1. Sound procedures to collect prices, calculate the index and publish it 2.

Since the introduction of a UCITS III, UCITS whose policy is to replicate an index is now permitted to invest up to 20% of net assets in shares and/or debt securities issued by the same body, with the 20% limit being raised up to 35% in the case of a single issuer where justified by exceptional market conditions. an index is used solely as a performance benchmark. A UCITS that proposes to use a financial index for which there is no requirement to submit an index certification should state, when making the application for authorisation to the Central Bank, that such index meets the regulatory requirements. Index tracking UCITS - ESMA recommends using the terms “passive” or “passively managed”, in addition to “index tracking” and a UCITS Management Company (“UCITS ManCo”) should consider providing additional wording to ensure the meaning of these terms is clear. An index tracking UCITS must also disclose the index it is tracking and show performance against that index in the past performance section of the KIID; The Undertakings for Collective Investment in Transferable Securities Directive (UCITS) 2009/65/EC is a consolidated EU Directive, that allows collective investment schemes to operate freely throughout the EU on the basis of a single authorisation from one member state. EU member states are entitled to have additional regulatory requirements for the benefit of investors. The Guidance has introduced a self-certification regime for UCITS proposing to use an index. As before, the CBI requires a confirmation of compliance of the index with the CBI requirements. As part of the new certification process, this confirmation must now be provided by a director on behalf the UCITS management company. Possible changes to UCITS depositary agreements to reflect updated language in the UCITS Regulation (where appropriate). ESMA has interpreted the Regulations so that there is a requirement for depositaries to carry out reconciliations between their own internal accounts and the records of their delegates. III. Index-tracking UCITS 1. The prospectus of an index-tracking UCITS should include: a) A clear description of the index including details of its underlying components. In order to avoid the need to update the document frequently, the prospectus can direct investors to a web site where the exact composition of the index is published.

(1) 13This section applies to an ICVC, an ACD, an authorised fund manager17 of an AUT or ACS and17 a depositary of an ICVC, AUT or ACS17 where such ICVC, AUT or ACS17 is a UCITS scheme, in accordance with COLL 5.2.2 R (Table of application).

or any portion of the UCITS’ net asset value as compared to an appropriate index of securities or other measure of investment performance. Performance fees are performance-related payments made directly by the management company or the UCITS itself for the benefit of identified staff. identified staff