Cold spots on Ucits IV heatmap according to RBC Dexia analysis

RBC Dexia has provided an update of how well or not individual EU markets have met the 1 July deadline for implementing Ucits IV – and it is clear that there are a number of markets severely lagging.

The firm has developed a system of lights to indicate the state of play of Ucits IV in each market.

Red means that there is no formal legal process yet. Amber means there is a parliamentary process in effect. Green means it is implemented.

According to the Ucits IV heatmap the state of play is as follows:

Red light – France, Belgium, Italy

Amber light – Spain, Switzerland

Green light – Germany, Luxembourg, Ireland, UK

Latest updates

Belgium: A draft law is in place, but has been delayed because of political uncertainty in Brussels.

France: A bill has been proposed to modernise the legal framework for asset management, but it was not signed into law before 1 July.

Germany: Changes to German fund law were approved by the Bundestag on 8 April 2011. Germany transposed the Ucits IV Directive into national law on 3 June 2011.

Ireland: The Irish minister for Finance signed legislation into law on 29 June 2011.

Italy: Draft law presented in mid-April 2011 has not been implemented. There is not clear idea when it will be done. The industry is still in discussions with regulator Consob and Banca d’Italia about proposed changes to regulations on master-feeder structures and cross-border mergers.

Luxembourg: Luxembourg was the first EU state to transpose Ucits IV into national law. Provisions came into force on 1 January 2011.

Spain: Spain’s Council of Ministers has proposed a bill to pass Ucits IV. However, it is still awaiting a legislative vote.

Switzerland: Switzerland approved KII documents and these will come into force on 15 July 2011.

United Kingdom: Documents to transpose Ucits IV amendments into law were placed before Parliament on 13 June 2011. The UK government said any law change would be in place by 1 July 2011.

The view

Jean-Michel Loehr, RBC Dexia chief of Industry and Government Relations said the differences in approach were not doing the industry any favours.

“These disparities have caused a high level of uncertainty for many asset managers about how their national government will interpret Ucits IV. Many have delayed fund launches until the situation in their home Member State is clarified.”

Still, he sees no letup in the regulatory pressure.

“There will be no respite from the European Commission. The dust has not even started to settle on UCITS IV and yet the fifth iteration of the UCITS directive is already in the works.”

“Despite the fact that key measures of UCITS IV, such as Master-Feeder and merger rules have not yet been put into use – for good reason given that many fund centres have not yet implemented them – a proposal for UCITS V is expected to be published before the year end , promising important measures on depositary requirements.

“The European Commission’s goal is to harmonize the financial system, but the uneven approach of Member States and the danger of overloading them with new legislation risks creating more confusion and delay.”

An ongoing Ucits IV watch is available online from

The site will post regular updates on the passage of Ucits IV into law in each of the leading markets until they all achieve a green light.



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