The final guidelines on repurchase and reverse repurchase agreements for UCITS funds have been published by the European Securities and Markets Authority (ESMA).
The guidelines state that UCITS should only enter into such agreements if they are able to recall at any time any assets or the full amount of cash.
According to ESMA the key elements of the guidelines are:
• For repurchase arrangements, UCITS should be able to recall at any time the assets subject to such arrangements;
• For reverse repurchase agreements, UCITS should be able to recall at any time the full amount of cash on either an accrued