Financial Services Quarterly Report – March 2011

UCITS IV Directive:¹ The New Notification Procedure

Background

UCITS wishing to market their shares or units to investors in another EU Member State are able to do so, provided they go through a notification process to seek approval of the relevant EU Member State in which the investors are located (otherwise known as the "UCITS Passport Procedure").

Under the current UCITS Passport Procedure, a UCITS that wishes to market its units in another EU Member State must inform its home Member State regulator and submit to the regulator of the host Member State (the "host state") its prospectus, simplified prospectus(es), latest annual report (and any subsequent semi-annual report) and constitutional documents, as well as evidence of compliance with the UCITS III Directive by the home Member State regulator. Once translated into the national language of the host state (if translations are required), the documents are filed with the host state's regulator and this