Comment by Joy Dunbar, Editor of Absolute UCITS
Many of the best movies have sequels to capitalise on the
success of the original franchise.
It seems like UCITS is turning into the asset management
version of an American movie franchise.
Like Rocky, Ghostbusters, Back to the Future, Police Academy
and others with a long trail of sequels, new versions of the
innovative directive are still coming out thick and fast.
In the last decade, UCITS III was adopted in 2002 and since
then three further versions have been consulted upon.
The original concept of UCITS was a great idea back in the
mid-eighties - a desire to create a harmonised set of asset
management rules for countries in the European Union.
However, fast forward to 2012 and we are moving towards another
version of the directive.
As I predicted in an earlier blog, as the ink
began to dry on UCITS V earlier last month a new consultation
document was published by the European Commission only weeks
One of the aims of the newer version is to keep pace with other
new regulations, including the Alternative Investment Fund
Manager (AIFM) Directive, as well as responding to the shadow
banking regulatory initiatives.
The new consultation, which will likely make up UCITS VI, aims
to look at product rules including the use of derivatives and
leverage, liquidity management, depositary rules and long-term
investments, and has even proposed 'improvements' to UCITS IV
which has only just been transposed by the majority of EU
With the eighth version of Police Academy expected to open in
cinemas next year, it begs the question: will there eventually
be even more UCITS directives than that seemingly never-ending
Maybe the next directive should be called UCITS VI: the final
frontier? At least until the next one!
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