MAKING THE MOST OF UCITS IV

UCITS IV Notification procedure

LEGAL TEXTS: DIRECTIVE 2009/65/EC (UCITS IV) , CHAPTER XI, ARTICLES 91 TO 96 - COMMISSION REGULATION (EU) NO. 584/2010

Thanks to the “Product Passport”, the UCITS IV Directive simplifies the registra- tion procedure with regard to cross-border distribution of UCITS units. Objective of the measure and benefits Having in the past been based on a direct filing by the Management Company with the regulator of the host Member State, the cross-border registration pro- cess will now take place directly between regulators. The regulator in the home Member State of the UCITS will have a maximum of 10 working days (compa- red with the current two months) from receipt of the Management Company’s

request to submit the UCITS registration file to the regulator of the host Member State. After this date, the UCITS may be marketed in the host Member State. With this move, the European legislator intends to simplify, harmonise and ac- celerate the conditions for gaining market access and thus reduce the costs in- volved in the registration process (administrative, translation, printing).

For Management Companies, the measure is likely to create new opportunities to develop cross-border marketing within the European Union.

Key features

The new registration procedure is based on direct, standardised communica- tion and strengthened cooperation between the competent authorities of the Member States.

the host Member State (details of which are available on the website of the competent authority). This information relates in particular to the provisions regarding local distributors, the local agent and the subscription/redemption procedures. • Part C is a commitment by the UCITS confirming that the file is complete and complies with Directive 2009/65/EC.

Content of the file The file to be lodged with the authority of the home Member State comprises a notification letter (see Annex 1 of Commission Regulation (EU) No. 584/2010) to which the documents required for registration are annexed. This notification letter contains information on the marketing arrangements for the UCITS units in question. It must be signed by a person authorised to sign or act on behalf of the UCITS. It comprises three parts (A, B and C): • Part A describes the key characteristics of the UCITS and lists the documents to be attached to any marketing file: Fund rules or articles of incorporation of the UCITS, prospectus, Key Investor Information Document (KIID), annual and semi-annual report if applicable. • Part B relates to the information and specific documents that will need to be provided in accordance with the national legislation and regulations of

Procedure and timescale

• Exchanges between competent authorities will be made electronically. The UCITS addresses the notification letter, accompanied by the required do- cumentation, to the competent authority of the home Member State. • Upon receipt of this request, the competent authority of the home Member State checks that the file is complete. • No more than 10 working days following the date of receipt of the letter and all documentation, the competent authority of the home Member State shall submit the file to the competent authority of the host Member State, attaching a certificate stating that the UCITS fulfils the conditions imposed by Directive 2009/65/EC (see Annex 2 of Commission Regulation No. 584/2010).

CACEIS cannot be held responsible for any inaccuracy or interpretation error this document may contain