Please enable JavaScript.
Coggle requires JavaScript to display documents.
UCITS - Coggle Diagram
UCITS
-
-
Depositary function
Cash monitoring function
Has to have oversight of the cash movement of the UCITS and have arrangements in place to oversee and monitor those movements
Ensuring investors subscription amounts and all monies belonging to the UCITS are paid into a bank account with a credit institution, central bank or third country bank which is in the name of the UCITS or in the name of its management company or the name of the depositary on behalf of the UCITS
For bank accounts that are opened in the name of the depositary on behalf of the UCITS ensuring that the bank accounts are not used or mixed with the depositary's own funds
-
-
Overight duties
-
Carrying out the instructions of the UCITS manager or investment adviser; unless the instructions contravene legislation or the fund documentation
Ensuring that for any transactions involving the assets of the UCITS, monies are remitted within the correct time limits
Ensuring the valuation of units is calculated in accordance with applicable national laws and the fund documents
-
-
-
Depositary function
There is a requirement that the assets of a UCITS are held by a depositary for safekeeping and specific requirements in place relating to the eligibility to act as a depositary and the depositary's material relationships with the manager and its delegates
Lays down common rules on investment funds in the EU, so UCITS can be offered cross border
The mains aims were to offer investors a wider choice within the UCITS market in the EU to facilitate better investor information and promote efficient funds supervision
Includes rules on provision of investor information via a standardised summary information document so that potential investors find it easier to understand the product, a European passport regime for UCITS management companies, marketing of UCITS in other countries through simplified agreed common procedures and stronger supervisory oversight of uCITS and of the companies that manage them by ensuring co-operation between the financial services supervisors of member states
The driven for the implementation of UCITS V was the Madoff fraud and the default of Lehman Brothers which saw significant global financial unrest, it also sought to align requirements between AIFMD and UCITS; so there is commonality of some requirements relating to the depositary function, remuneration of personal and regulatory sanctions that can be imposed
A depositary must act honestly, fairly, professionally, independently and solely in the interest of the UCITS and the investors of the UCITs at all times
The depositary must also have produces in place to identify and manage conflicts of interests which it identified during it fulfilling its functions