On June 22, the European Council formally adopted the UCITS IV Directive on Undertakings for Collective Investments in Transferable Securities (UCITS) (amending 85/611/ECC) (Directive). Member States have until July 1, 2011, to implement the Directive into national legislation. New provisions include:
- UCITS Funds can in future be managed by a management company authorized and supervised in a Member State other than the home Member State of the Fund;
- a new unified regime for both cross-border and domestic mergers of UCITS Funds;
- for the first time UCITS to be able to be established as master-feeder funds;
- a “Key Investor Information” document will replace the current simplified prospectus; and
- a simplified notification procedure/cross-border marketing process will be brought in.