LAWS TO WATCH: Open-ended Investment (UCITS) Funds Act
Open-ended Investments Funds Act (UCITS – undertakings for the collective investment in transferable securities) harmonises with the Directive 2013/14/EU. The amendment specifies that the funds must avoid reliance on credit ratings and their use as the only parameter for assessing risk.
The act also redefines the primary and auxiliary fund activities. Voluntary pension funds take over the management of primary activities. Primary activities now includes the management of activities of funds established under special legislation (i.e. Pension funds, War Veterans’ funds). Auxiliary activities for UCITS funds are portfolio management, investment consulting, storage and administration.
Note: Public debate is open until 11 August…