The objectives are to provide participants with an overview of the legal and regulatory framework applicable to UCITS with regard to: (i) the eligible asset classes and the key concepts related to them (ii) the main diversification rules applying to the UCITS’ assets (iii) the rules preventing UCITS’ from owning controlling stakes and (iv) rules applicable to the counterparties.
a) Eligible asset classes and the key concepts related to them
- overview of the mainstream asset classes for UCITS
- key concepts used by the UCITS framework including the definition of a regulated market, transferable security and money market instrument
- the so-called “trash ratio”
- rules applicable to derivatives
- brief overview of CSSF requirements applicable specific instruments like SPACs, collateralised debt obligations, contingent convertible bonds etc.
b) main diversification rules applying to the UCITS’ assets:
- 5/10/40 rule
- rules applicable to sovereign bonds
- notion of a financial index, including increased concentration limits and the concept of “highly correlated” assets
c) the rules preventing UCITS’ from owning controlling stakes
d) rules applicable to the counterparties
- counterparty exposure limits
- reducing counterparty exposure with collateral
- eligible collateral
- requirements regarding counterparties to OTC derivatives
e) efficient portfolio management techniques
- main types and their characteristics
Piotr Giemza-Popowski (Counsel, Investment Management practice, Arendt & Medernach)
Allison Niccoletti (Associate, Investment Management practice, Arendt & Medernach).
Professionals of the Investment Management Sector.
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We have also a session available on 30 June "UCITS eligible assets – legal and regulatory framework / CSSF administrative practice".
For more information please contact us by e-mail at firstname.lastname@example.org