The Member States having recently implemented the so-called UCITS IV Directive1, on July 3, 2012 the European Commission has already published a "Proposal for a Directive of the European Parliament and of the Council amending the UCITS IV Directive" (the "UCITS V Proposal Directive").

This proposal takes into account the latest market developments and the experiences of market participants and supervisors gathered so far, in particular to address discrepancies between national provisions in respect of depositaries' duties and liability, remuneration policy and sanctions.

One may also summarize the UCITS V Proposal Directive while stating that the AIFM Directive2 – being focused on professional investors - has been adapted to mirror the retail profile of UCITS investors.

The key elements of the UCITS V Proposal Directive are therefore the following:

  • Rules on depositaries' duties, relevant sub-delegation, eligibility, liability and redress against the depositary;
  • Rules on the remuneration of key members of the UCITS managerial staff; and
  • Sanctions and measures that are to be available to the supervisors in case of key violations of the UCITS rules.


1 Directive 2009/65/EC of the European Parliament and of the Council of July 13, 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities which has been implemented by the Luxembourg law of December 17, 2010 concerning undertakings for collective investment.

2 Directive 2011/61 EC of the European Parliament and of the Council of May 27, 2011 on alternative investment fund managers.

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