This ESMA Q&A paper clarifies certain practical aspects of the UCITS cross-border notification procedure.

This procedure, introduced by UCITS IV, provides for regulator-to-regulator notifications of the intention of UCITS to market their units in another Member State. Under the procedure, the notification in the prescribed form is submitted by the UCITS to its home regulator. If in order, the home regulator must transmit the notification to the host regulator within 10 working days. The UCITS may market its units in the host Member State upon the transmission of the notification. The Q&A paper seeks to promote common supervisory approaches in the application of this aspect of the UCITS IV Directive.

The paper clarifies that the marketing of each investment compartment of a UCITS must be notified to the relevant Member State. This is equally applicable where other compartments of that UCITS have already been notified for marketing in the relevant Member State. Notification of several compartments can be made at the same time.

Each document submitted as part of the notification must be made available via website. The Q&A paper states that the documents must be made available on the UCITS website (which may be that of the UCITS Investment Manager) as soon as possible after the confirmation of the transmission of the notification is received by the UCITS and that documents on the website must not be password-protected.

Other practical aspects clarified by the Q&A paper are the filing requirements with regard to subsequent amendments to documents contained in the notification and evidence of payment of the notification fee.

For further information, please contact one of the key contacts listed above or your usual contact in our Asset Management and Investment Funds Team.