This focused workshop will provide a detailed analysis of the UCITS Investment and Borrowing limits, including in respect of derivatives. The programme will include numerous practical examples to clarify the more challenging areas and facilitate understanding.
1. Introduction - types of rules relevant to funds
• Regulatory - UCITS, NURS etc
• Major Shareholding, Takeover Limits, Foreign Investment Limits, Sensitive Sectors, Short Selling
• Prospectus, Industry and Internal Limits
2. An introduction to UCITS Eligible Assets
3. UCITS Investment in to Transferable Securities
• Regulated Markets: Eligible Markets regime; 10% in unapproved transferable securities limit
• The 5/10/40 rule
• Government and Public securities
• Covered Bond Provisions
4. Index Tracking UCITS Funds
5. UCITS – Investment into Cash & Deposits, including Ancillary Liquid Assets
6. Borrowing rules, including jurisdictional differences in borrowing for investment purposes
7. UCITS investment into Collective Investment Schemes, including non-UCITS
8. Active and Passive Breaches: reviewing a breach determining compensation requirements
9. The UCITS concentration and significant influence rules
10. Derivatives – the key derivative rules
• Look through exposure for the 5/10/40 rule etc
• Global exposure, including VaR limits
• Counterparty exposure
• Cover Requirements
11. Derivatives –calculating commitment approach exposure for UCITS
12. The role of the Trustee / Depositary
13. Jurisdictional comparisons between Dublin, Luxembourg and UK
• Interpretation of the investment and borrowing rules
• Operational processes and timeframes for resolving breaches and compensating
• Reporting to the Regulator
Who will benefit?
This course will be of value to people in a range of roles within authorised fund firms and their advisers, including: Risk analysts, Compliance managers, Product specialists, Lawyers and Trustees.
Course Leader: Darren Burrows
Darren Burrows is a funds expert (primarily UCITS) and Managing Director of Funds-Axis Limited, CTP's training partner in the investment management sector.
A law graduate and chartered accountant, Darren is Member of the Chartered Institute of Securities and Investment with over 12 years financial services and fund management experience. His specialities include: risk, compliance and business process optimisation, derivatives and eligible assets under UCITS III, fund accounting, UCITS IV and implementation of investment restriction monitoring systems.