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Benedicte Gravrand, Opalesque Geneva:

UCITS V, which enters into force on 17 September, will amend the current UCITS regime to tackle apparent discrepancies across the European Union. Those discrepancies touch on the duties and liability of depositaries, remuneration policy and sanctions. They became evident following the collapse of Lehman Brothers and the Madoff scandal.

Clifford Chance, an international law firm, summarizes the regime in a recent briefing, and says the UCITS V depositary regime applies to UCITS established in EU member states, which have 18 months to transpose UCITS V into national law. So the new rules are to be applied by 18 March 2016. Meanwhile, this year and next, ESMA, the European Securities and Markets Authority, is developing technical standards and guidelines.

"Investment companies or management companies must appoint a depositary that complies with the UCITS V eligibility requirements by March 2018, if their existing depositary does not meet the eligibility requirements in March 2016," the briefing adds.

On the whole, UCITS V will align with AIFMD documentation and compliance procedures; UCITS template documents will have to be amended to align with UCITS V; marketing procedures and internal educational material will be updated; and 're-pape......................

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