UCITS V – the debate rumbles on

The European Parliament vote on amendments to the UCITS IV Directive has been delayed. UCITS V, as it will be known, covers three main themes: depositary functions, regulatory sanctions and remuneration requirements. It’s the latter that no one can agree on, with bonus payment caps proving particularly contentious.

Sven Giegold, the European Parliament’s Rapporteur on UCITS, asked for the vote to be postponed to the first week of July because there are continuing political differences of opinion with regard to bonus caps and performance fees. This, despite the fact that Economic and Monetary affairs committee members backed initial proposals earlier in the year. The amended directive proposes a level of consistency regarding compensation issues, complementing the recently adopted EU rules capping banking bonuses.

It will be interesting to follow this debate closely in the coming weeks to see if such a contentious topic will be dropped entirely from the UCITS V amendment. Whatever the outcome, these delays and disagreements just add to the woes of buy-side compliance teams already challenged by the sheer weight of regulatory change the industry is experiencing.

One Response to “UCITS V – the debate rumbles on”
  1. Steven Strange says:

    Interestingly the European Parliament vote has since taken place with MEPs voting against the bonus cap measure. Although the Directive still includes some remuneration requirements, the bonus cap limitation which caused the most friction amongst parties has been dropped.

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