UCITS investment restrictions – legal and regulatory framework

Objectives

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.

Content

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

• definition
• main types and their characteristics

Speakers

Our speakers belong to both our specialised and complementary teams and as such, cover all legal, regulatory, taxation and advisory aspects of doing business in Luxembourg. We invite you to check our training agenda where the speakers are listed on each training session.

Target Group

Professionals of the Investment Management Sector.

Duration

4 hours.

Language

English

For more information,please contact us by e-mail at institute@arendt.com