CSSF Circular 14/587 on UCITS Depositaries
In a nutshell
The CSSF recently published a Circular inviting Luxembourg UCITS and their depositaries to anticipate the so-called directive ‘UCITS V’ via a substantial alignment and harmonisation with the common elements of the UCITS and AIFMD depositary regimes.
The Circular provides that its recipients must comply with its provisions by 31 December 2015 at the latest, i.e. less than three months ahead of UCITS V which is to be implemented by 18 March 2016.
A closer scrutiny at the rules contained in the Circular further shows that what might appears to be an unusual ‘gold-plating’ move by Luxembourg should in fact prove to be for many operators a confirmation of their current best-market practice.
For both practical and cost-effective reasons, UCITS depositaries might consider implementing the terms of the Circular and of UCITS V at the same time, and thus be (almost) fully UCITS V compliant on depositary aspects by 1 January 2016.