The European Securities and Markets Authority (ESMA) has confirmed there will not be an extension to the implementation of the Ucits V directive.
In its updated Q&A on the regulation, ESMA says there will be no delay to the 18 March 2016 implementation date. Many in the industry had expected a delay to allow for all rules to be determined.
Sean Tuffy, senior vice president at Brown Brother Harriman Fund Administration Services, says it had been hoped in some quarters that “all of the rules would be in place” before the March implementation date.
However, he said that such a delay would “not be practical”.
The Q&A document from ESMA responded to questions from the public and industry bodies.
In responding to a question on the details of existing UCITS depositary contracts and when they must be published, ESMA stated: “UCITS V will start to apply on 18 March 2016.”
Also in the Q&A were details of the remuneration rules that will apply as part of Ucits V.
The Ucits V directive will require product prospectuses to include some information on remuneration, while KIIDs must include detailed remuneration policies. However, providers will not be required to issue updated documents at the deadline, but can instead wait until their next annual update or revision.
“This is fairly practical, and providers don’t need to do things as of the 18 March,” Tuffy says. “We don’t have the full rules, so we can’t do anything at the moment anyway.”