Irish Legislation transposing the UCITS IV Directive and its attendant implementing measures has been signed into law. The deadline for transposition of the Directive by all EU Member States is 1 July 2011.  

UCITS IV introduces:

• The simplification of the procedures enabling the cross-border distribution of UCITS
• The establishment of a common framework for mergers of UCITS on both a domestic and a cross-border basis
• Asset pooling through the use of master/feeder UCITS structures
• A passport for UCITS management companies
• The replacement of the simplified prospectus by a “key investor information” document, the objective of which is to convey simple facts to retail investors in a clear and comprehensible manner
• The strengthening of organizational requirements for management companies and self-managed investment companies
• The improvement of co-operation mechanisms between national regulators

The guiding principles underlying the changes are the need to improve market efficiency (including by jettisoning unnecessary administrative red-tape) and investor protection.

Contributed by Patricia Taylor.

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