Digital Assets Report


Like this article?

Sign up to our free newsletter

Published register of non-compliance could have profound impact on firms not abiding by UCITS V

Related Topics

Ahead of the deadline for full implementation of UCITS V on Friday (18 March), Matt Gibbs (pictured), product manager at Linedata, comments on the impact of the introduction of a published register of non-compliant firms…

With changes introduced under UCITS V set to become effective on 18 March, most companies should now be fully prepared to comply with the new requirements. While there is every indication that punitive fines will be levied against non-compliant firms, the promise of public naming and shaming will be a sobering prospect for the industry.
UCITS V will introduce a published register of firms which have been sanctioned for not complying with the new requirements, including the levels of fines imposed. This will add a previously concealed level of transparency to the investment selection process.
Many factors are taken into account when investors select a UCITS fund, beyond simply looking at past performance and asset allocation. For those investors looking to invest over a long-term investment horizon, reputation and past conduct of an adviser is paramount and this register will help identify which managers and depositories are compliant.
Appearing on the UCITS V ‘black list’ is likely to make investors pause for thought, and lean towards those firms which are operating in accordance with the regulator as an indication of higher standards of corporate governance. Companies need to think beyond the fines and sanctions that will be levied if they do not comply with UCITS V, and consider the longer-term repercussions to their reputations.

Like this article? Sign up to our free newsletter

Most Popular

Further Reading