On June 30, 2016, HM Treasury published a Command Paper on the post-implementation review of the Undertakings for Collective Investments in Transferable Securities Regulations 2011, which implement the revised EU UCITS IV. The Command Paper sets out the Government's assessment of the regulatory regime for UCITS as implemented by the 2011 Regulations, including an assessment of the extent to which the 2011 Regulations meet the objectives, the impact of the 2011 Regulations and whether there are any unintended consequences of the 2011 Regulations.

UCITS IV amended the UCITS III regime, amongst other things, to eliminate barriers to cross-border functioning of UCITS funds, facilitate the merger of funds and create master/feeder structures. The Government's review of the UCITS framework highlights that there are still barriers to fund mergers and master/feeder structures, restricting the extent of anticipated economies of scale. However, many of the issues relate to the content of the EU legislation and not to the UK's implementation of it. The Government expects there to be a UCITS VI and will continue to engage with the EU authorities to develop the EU UCITS regime, including by encouraging the alignment of the UCITS regime with that of the Alternative Investment Fund Managers framework, to reduce what it perceives to be as unnecessary burdens on the industry.

The Command Paper is available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/533626/UCITS_web_final.pdf