On 30 September 2016, the Belgian federal cabinet approved a preliminary draft law intended to transpose into Belgian domestic law Directive 2014/91/UE on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (“UCITS”) as regards depositary functions, remuneration policies and sanctions (“Directive UCITS V”).

Directive UCITS V will overhaul current rules in respect of:

  • the duties and liabilities of depositaries;    
  • the remuneration policies within management companies for UCITS and self-managed investment companies; and    
  • the sanctions regime.    

Note that Directive UCITS V does not grant much leeway to Member States and, consequently, Belgium’s government did not put forward “gold-plated” provisions. 

Member States were bound to comply with Directive UCITS V by 18 March 2016. An ensuing infringement proceeding for non-communication of the national transposition measure has therefore been commenced by the European Commission and is still pending against Belgium.