The Luxembourg law of 10 May 2016 (the “UCITS V Law”) was published in the official journal on 12 May 2016. The UCITS V Law will enter into force on 1 June 2016.

The UCITS V Law implements Directive 2014/91/EU (the “UCITS Directive”) of 23 July 2014 amending Directive 2009/65/EC on the coordination of the laws, regulations and administrative provisions relating to Undertakings for Collective Investment in Transferable Securities (“UCITS”) as regards depositary functions, remuneration policies and sanctions.

More specifically, the UCITS V Law implements the rules for depositaries as foreseen under the UCITS V Directive in relation to Luxembourg UCITS and modifies the provisions in relation to Undertakings for Collective Investment (“UCIs”) subject to Part II of the Luxembourg law of 17 December 2010 concerning undertakings for collective investment. The UCITS V Law also contains provisions impacting AIFMs, for instance in relation to the accounting documents of AIFMs and cross-border provisions of MIFID Investment services by AIFMs.

In addition, the UCITS V Law implements provisions relating to remuneration policies for those persons managing UCITS or having an impact on the UCITS’ risk profile. The UCITS V Law furthermore harmonizes administrative sanctions that may be undertaken by the Commission de Surveillance du Secteur Financier (CSSF).

Please see dechert.com/publications for an upcoming Dechert Onpoint on UCITS V.

Read the accompanying press release 'Publication of the Law of 10 May 2016 Transposing Directive 2014/91/EU (UCITS V)'