On October 23, 2015, HM Treasury published a consultation paper on the proposed amendments to UK legislation required to implement the Undertakings for Collective Investments in Transferable Securities Directive V. UCITS V must be implemented by March 18, 2016. Whilst UCITS V will primarily be implemented through changes to the Financial Conduct Authority rules, legislative changes are also required. HM Treasury's consultation seeks views on such legislative changes whereas the FCA is consulting separately on the FCA rule changes. HM Treasury will be implementing legislative provisions on national sanction regimes and UCITS depositaries. HM Treasury is seeking views on its approach to the implementation of the depositary provisions, in particular: (i) governance practices such as the eligibility to act as a depositary; (ii) liability for safekeeping of a UCITS fund’s assets; and (iii) the delegation of custody of a UCITS fund’s assets. In relation to sanctions, HM Treasury aim to make minor amendments to the relevant sections already in place in the Financial Services and Markets Act, clarifying that breaches of national legislation transposing UCITS V trigger the FCA’s existing sanctions. Comments are due by December 17, 2015.

The consultation paper and proposed legislation are available at: https://www.gov.uk/government/consultations/consultation-on-amendments-to-the-ucits-directive-ucits-v/amendmentsto-the-ucits-directive-ucits-v and https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/470069/Annex_B_- _Draft_Statutory_Instrument_-_UCITS_V_Directive.pdf