Operators of UCITS funds should note that under COLL TP 1 Transitional Provisions (section 31), the transitional period for including depositary information and remuneration disclosures in prospectuses expires on 30 September 2016. All prospectuses need to be updated by then.

The material in question is that required by COLL 4.2.5(8)(f) (g) and (h) and 4.2.5(28) - depositary's duties and conflicts of interest; delegation of safe custody; availability of up to date information; remuneration policy.

The corresponding date for NURS funds is 31 March 2017 (and the disclosure requirements are slightly different).


The International Organisation of Securities Commissions (IOSCO) has published its final report on good practice for fees and expenses charged by `collective investment schemes' (CIS). CIS is defined by IOSCO to include authorised or regulated open-ended investment funds that redeem shares or units on a continuous or periodic basis, and closed-ended funds the shares or units of which are traded on regulated or organised markets.

The report sets out 23 examples of good practice across a number of key areas, including:

  • permitted or prohibited costs for a CIS;
  • disclosure of fees and expenses to the investor, including the use of electronic media;
  • remuneration of the CIS operator;
  • performance-related fees;
  • transaction costs;
  • hard and soft commissions on transactions;
  • fees associated with CIS that invest in other funds;
  • fee differentiation in multi-class CIS; and
  • changes to the fees and expenses of a CIS.

The report is the second to be published by IOSCO setting out good practices in this area, following a review conducted in 2004. The report envisages that IOSCO will continue to update its recommended good practices as markets continue to evolve and change.


The International Organisation of Securities Commissions (IOSCO) has published a consultation report on a proposed set of good practices on the voluntary termination process for investment funds including collective investment schemes and commodity, real estate, private equity and hedge funds. The consultation report makes the following 15 recommendations of good practice:

Disclosure at time of investment:

  • The ability to terminate a fund and the processes for termination should be disclosed to investors at the time of investment.
  • Fund documentation should set out how a fund will deal with investors who are not contactable at the time of termination.

Decisions to terminate:

  • The decision to terminate a fund should take due account of the best interests of investors in the fund.
  • A termination plan should be issued following a decision to terminate a fund. IOSCO makes a number of recommendations as to the contents of such termination plans.
  • Open-ended funds should consider suspending investor subscriptions and redemptions during the termination process with a view to protecting the interests of investors.
  • The termination plan should be approved by the entity responsible for the management of the fund and, where applicable, by the fund's custodian.

Decisions to merge:

  • Decisions to merge funds should be clearly communicated to investors.
  • Where possible, investors should only be offered the option to merge where the receiving investment fund has similar investment objectives, policies and risk profile to the terminating investment fund.
  • Investors should be offered the right to redeem free of redemption or exit charges before a merger takes place.
  • Where the decision to merge is for commercial reasons, the entity responsible for the management of the fund should incur all costs or should otherwise justify to investors its decision not to bear costs.

During the termination process:

  • Appropriate information about the termination process should be communicated to all investors in a timely manner.
  • Assets should be valued fairly and conflicts of interest should be addressed.

In relation specifically to commodity, real estate, hedge and private equity funds:

  • Redemptions in specie at termination should be offered to consenting investors while ensuring that the best interests of other investors in the fund are not jeopardised.
  • Side pockets may be used where provided for in the fund documents.
  • Plans for the winding-up of funds of a finite duration should be made in advance.

Responses to the consultation may be submitted to IOSCO on or before 17 October 2016.