The Presidency of the Council of the EU has published an addendum (dated 4 December 2013) to its note to its Permanent Committee of Representatives (COREPER) relating to the European Commission’s legislative proposal on UCITS V. The addendum contains declarations from Member States, including the UK.

The UK expresses concern that article 52(1) of UCITS V could artificially discriminate against the use of over-the-counter (OTC) derivatives that are cleared through central counterparties (CCPs). This issue is of concern because EMIR introduces clearing obligations requiring standardised OTC derivatives to be cleared through CCPs. This could discriminate in favour of exchange-traded derivatives and non-centrally cleared derivatives.

The Council of the EU also announced that COREPER has agreed its position on UCITS V and that negotiations with the European Parliament can start.

View Report from the Presidency on the Directive of the European Parliament and of the Council amending Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) as regards depositary functions, remuneration policies and sanctions (UCITS V), 11 December 2013