The Undertakings for Collective Investments in Transferrable Securities (UCITS) product has been a European success story since its creation almost 30 years ago and it is now a well-established and successful global brand. Importantly, UCITS has not stood still, but has evolved considerably since its inception,and there are more changes on the horizon.
The regulatory landscape for funds has changed considerably over the past 30 years with the enactment of UCITS I in 1985, UCITS III in 2001, and UCITS IV in 2009. The UCITS V Directive took legislative effect in August 2014, and in a further effort to improve the UCITS framework, the European Commission has proposed even more changes in a consultation on “Product Rules, Liquidity Management, Depositary, Money Market Funds, Long Term Investments”, more widely known as UCITS VI.
On the domestic front, again, change is afoot. The Central Bank of Ireland has published a range of UCITS Notices which set down conditions with which UCITS funds, their management companies and depositaries must comply. The Central Bank has proposed replacing these Notices with a UCITS Rulebook which will consolidate all these conditions into one document.