Earlier this week, the European Commission published its long-awaited proposals for the latest version of the UCITS Directive.
The main objective of the draft UCITS V Directive is to clarify and harmonise the level of investor protection in the EU through the alignment of tasks and responsibilities that are expected from the depositaries of UCITS.
The EC proposal for amendments to UCITS V focuses on three areas:
Clarification of the UCITS depositary's functions and improvements to provisions governing their liability, should assets be lost in custody;
The introduction of rules on remuneration policies that must be applied to key members of the UCITS managerial staff; and
Harmonisation of the minimum administrative sanctions that are to be...