A Technical Paper on “Annual Financial Reporting requirements around the disclosure of Global Exposure under UCITS IV” has been prepared by the Irish Funds Industry Association (the “IFIA”) to assist in the preparation of annual and half-yearly reports.
The paper examines the requirement to calculate Global Exposure in accordance with the Committee of European Securities Regulators (“CESR”) (now the European Securities and Markets Authority (“ESMA”)) Guidelines published in July 2010 and the UCITS Notices issued by the Central Bank of Ireland in July 2011.
Furthermore, the paper provides guidance on practical issues pertinent to Global Exposure such as:
- ensuring that the Risk Management Process document ( the “RMP”) contains the necessary information on the methodology for the calculation of the Global Exposure for UCITS; and
- appropriate FRS 29 disclosure.