HM Treasury has published a review of the Government’s transposition of the UCITS IV Directive.
Implementation of the UCITS IV Directive involved changes to primary and secondary legislation, and to the (then) FSA Handbook of rules and guidance. HM Treasury made the required changes to legislation by way of statutory instrument, the Undertakings for Collective Investment in Transferable Securities Regulations 2011.
The paper and the associated post implementation review (PIR) contained in Annex 1, set out the Government’s views as to:
- the extent to which the objectives of the UCITS IV Directive have been achieved by the UK’s implementation;
- improvements to the UCITS framework; and
- whether there have been any unintended consequences.
As regards next steps, HM Treasury acknowledges that the UCITS IV Directive has since been amended by the UCITS V Directive, which was implemented through the Undertakings for Collective Investment in Transferable Securities Regulations 2016 and through FCA rules. The review states that the Government will continue to engage with industry and consumer groups to ensure that future UCITS legislation remains proportionate and fit for purpose. Also, given that the improvements identified for the UCITS framework are changes to the underlying EU Directive, rather than changes to the method of UK implementation, the Government will consider how best to feed the findings of this review into future EU-wide reviews or consultations regarding the UCITS framework.