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The law of 17 December 2010 on undertakings for collective investment transposes the European UCITS directive of 13 July 2009 known as UCITS IV (DIR 2009/65/EC) into national law.

The directive aims to harmonise the rules governing UCITS and to improve the way their distribution functions within the the European Union.

The directive will significantly update the existing Directive 85/611/EEC by modernising the regulatory framework with a view to:

  • assuring adequate protection for investors through more coherent, clearer, correct and comprehensible information in relation to market evolutions,
  • maintaining the fund industry's competitiveness by adapting the regulatory framework of the market,
  • paving the way for cost reductions, while safeguarding a diversified investment product for investors.

In general, the European Investment fund industry needs to enhance its competitiveness by improving the quality of its services and reducing costs.

The UCITS IV Directive deals with the following points:

  • management company passport,
  • cross-border mergers,
  • asset grouping by means of joint structures (master-feeders)
  • simplified authorisation procedures,
  • replacement of the simplified prospectus: Key Investor Information or Key Investor Disclosure (KID),
  • measures concerning implementation.

These measures are applicable since 1 July 2011, insofar as each member state has transposed them by that date.

As regards measures for execution, the European Commission has mandated the ESMA (European Securities and Markets Authority) to study the content of different measures and to draw up proposals. The member states will then be invited to transpose these execution measures at the same time as the UCITS IV Directive itself.

The principal measures providing detailed improvements to the UCITS regulations are as follows:

Articles

  • 28/09/2011

    The Association of the Luxembourg Fund Industry (ALFI) sets out on 27th September 2011  its ambition for the Luxembourg Fund Centre, to be a global centre of excellence for the asset management industry, thereby creating opportunities for investors, fund professionals and the global community as a whole.

  • 09/09/2011

    Finesti, the Luxembourg-based information agency for the collection and dissemination of fund information, has launched a service that enables investment funds to comply with the requirements of the UCITS IV directive concerning European cross-border notifications.

  • 06/07/2011

    Only one fifth of the active participants in cross border fund registration in Luxembourg planned to be ready with their first Key Investor Information document (KII), by 1 July 2011, launch date of UCITS IV. To date, however, over 70% of the participants admitted to not having clarified their liability regarding KII with their legal advisor. These results emerged from a survey conducted by Deloitte Luxembourg between the first and second quarter of 2011.

  • 18/05/2011

    A partir du 1er juillet 2011 les OPCVM de droit luxembourgeois jusqu’ici soumis à la loi du 20 décembre 2002 concernant les organismes de placement collectif (la « loi de 2002 ») seront de plein droit régis par la nouvelle loi du 17 décembre 2010. Les prospectus de vente de ces OPCVM seront donc également de plein droit régis par la loi de 2010 à partir de cette date. La CSSF accepte que les adaptations des simples références à la loi de 2002 dans les prospectus de vente des OPCVM ne doivent pas être effectuées pour le 1er juillet 2011, mais qu’elles peuvent se faire au fur et à mesure lors de la prochaine mise à jour des prospectus.

  • 01/04/2011

    Le concept de prospectus simplifié, qui avait été introduit par la loi du 20 décembre 2002 concernant les organismes de placement collectif, a été supprimé par la nouvelle loi du 17 décembre 2010 concernant les OPCs et remplacé par celui des « informations clés pour l’investisseur » (le « Key Investor Information Document » ou « KIID »), régi par les articles 159 à 163 de la loi de 2010.

     

  • 09/02/2011

    On 9 February 2011, the ABBL and ALFI held their second Depositary Bank Forum breakfast seminar in order to inform members on the challenges for depositaries in the context of  the AIFM Directive and the forthcoming new legislations on the UCITS depositary function.

  • 16/09/2010

    An industry research report published jointly today by the European Fund and Asset Management Association (EFAMA) and KPMG’s European Investment Management practice shows that there are significant tax complications in the new Undertakings for Collective Investment in Transferable Securities (UCITS IV) Directive that prevent the achievement of a harmonised European funds industry. The report identifies critical tax issues and numerous examples of discrimination and inefficiencies across the 27 European Union (EU) Member States.

  • 03/09/2010

    As announced during our UCITS IV European seminar series, Clifford Chance is pleased to publish a comprehensive guide titled "UCITS IV: New Beginnings" together with a booklet containing relevant UCITS IV legislation and other documents.

  • 30/08/2010

    The fund tax regime has been improved for master feeder funds and foreign funds managed in Luxembourg. Both fund types are expected to grow after UCITS IV. Draft Law 6170 which implements Directive 2009/65/EC of 13 July 2009 on undertakings for collective investment in transferable securities (“UCITS IV” Directive) introduces as from 2011 some positive tax changes for the Luxembourg Investment fund industry.

  • 30/08/2010

    On 6 August 2010, the Luxembourg Ministry of Finance submitted to Parliament a bill which transposes the European Directive 2009/65/EC of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to UCITS IV into domestic law.

   
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