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ARTICLE · 26 OCTOBER 2016

UCITS V Regulation On Depositaries' Obligations Comes Into Force

Chevalier & Sciales
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To ensure that the depositary performs its duties properly, the regulation provides a detailed list of all the elements to be included in the written depositary contract.

LuxembourgFinance and Banking
Olivier Sciales
Olivier Sciales
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The Commission's delegated regulation (EU) 2016/438 of December 17, 2015, which updates the UCITS regime provisions on the obligations of depositaries, has taken effect as of October 13. The UCITS V Level 2 regulation sets out detailed uniform rules in particular regarding the duties of the depositaries of UCITS funds.

The regulation lays down requirements regarding depositaries' duties, delegation arrangements and the liability regime for UCITS assets under custody, designed to provide a high level of investor protection.

Written agreement

To ensure that the depositary performs its duties properly, the regulation provides a detailed list of all the elements to be included in the written depositary contract. It should notably provide adequate detail on the categories of financial instruments in which the UCITS may invest and the geographical regions where investments may be made.

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