The FCA has published Consultation Paper 15/27: UCITS V implementation and other changes to the Handbook affecting investment funds (CP15/27).
CP15/27 contains three sets of proposals relating to the regulation of authorised investment funds:
- in Part 1 the FCA consults on rules and guidance to give effect to a new set of changes introduced by the UCITS V Directive. The FCA consults on: (i) the requirements applicable to management companies, including the remuneration principles and the transparency obligations towards investors; and (ii) changes to the regime for depositories, including the eligibility criteria for firms;
- in Part II the FCA consults on changes to its Handbook to ensure that the Regulation on long-term investment funds (the ELTIF Regulation) operates effectively. In particular, the FCA consults on the current rules for depositories wishing to act for an ELTIF and also sets out its proposed fees for authorising and supervising ELTIFs; and
- in Part III the FCA consults on a number of changes to its Handbook to keep the rules and guidance for authorised investment funds up to date. The proposed changes aim generally to: (i) clarify and standardise some of its reporting requirements; (ii) introduce greater operational flexibility and efficiency in certain areas; (iii) clarify ambiguities in the application of certain rules; and (iv) bring its Handbook up-to-date with market practices, deleting obsolete provisions. The FCA also sets out some initial thinking on various matters that it would like to explore with stakeholders before it develops proposals for consultation. These matters include: (i) allowing fund managers to cease temporarily accepting new subscriptions into a fund to protect the interests of existing investors; (ii) amending the rules about which entities can be counterparties to an over-the-counter derivative transaction in a UCITS scheme; and (iii) understanding whether changes to its Handbook might enhance the attractiveness of the ELTIF as a new type of fund, for both the institutional and retail markets.
The deadline for comments on:
- Part I is 9 November 2015 – a Policy Statement is expected in early 2016;
- Part II is 5 October 2015 – a Policy Statement is expected by 9 December 2015; and
- Part III is 7 December 2015 – a Policy Statement is expected in 2016.
View CP15/27: UCITS V implementation and other changes to the Handbook affecting investment funds, 3 September 2015