UCITS V Update - Level 2 Emerges

The European Commission formally published a draft Level 2 Regulation (the " L2 Regulation") in respect of UCITS V on 18 December 2015. This comes after the unofficial version has been in circulation for several months.

What is in Level 2?

This sets out more detailed provisions in support of Level 1 text across the following areas of UCITS V:

• Details to be included in the depositary contract;
• Depositary duties (details in relation to oversight duties, cash monitoring duties, safekeeping duties and ownership verification and record keeping duties);
• Measures in relation to insolvency of sub-custodians, including the requirement for third country assessment and a legal opinion (which may be generic);