It is now six months on from the entry into force of the relevant laws required to implement the UCITS V Directive, and UCITS managers’ thoughts should have turned to prospectus updates.
On 30 September 2016, Transitional Provision 31 to the FCA’s Collective Investment Schemes Sourcebook (“COLL”) will come to an end. TP31 permitted UCITS prospectuses issued before 18 March 2016 to omit certain wording required under COLL 4.2.5R relating to the depositary and remuneration.
Broadly, the required information regarding the depositary includes the following (at COLL 4.2.5R (8) (f), (g) and (h)):
- a description of the depositary’s duties and conflicts of interest that may arise between the depositary and the UCITS, its unitholders or its manager;
- information on the depositary’s safekeeping functions and any delegation (including, where relevant, lists of custodians and sub-custodians); and
- a statement that up-to-date information regarding the depositary will be made available to unitholders on request.
The prospectus must also, in accordance with COLL 4.2.5R (28), include information on the remuneration policy that applies to the UCITS. This can take the form of either:
- up-to-date details of the policy, including a description of how remuneration and benefits are calculated and the identities of persons responsible for awarding the remuneration and benefits; or
- a summary of the policy and a statement that up-to-date details of the matters set out in the previous bullet are available by means of a website (including a link to that website), and that a paper copy of that information will be made available free of charge on request.
Many UCITS prospectuses will already have been revised to include this information, but UCITS managers should look to ensure that all UCITS prospectuses now include the relevant provisions of COLL 4.2.5R and filed with the FCA before close of business on 30 September 2016.