UCITS Compliance

Start Date: 31/12/2013

Duration: 1 Day

Programme overview

This session tackles the UCITS rules and guidance in a very practical way. Participants use examples and case studies to illustrate how the rules are applied and to identify scenarios where some of the UCITS requirements are breached. There are a number of exercises throughout the session. Participants complete these exercises in groups or as individuals. In addition, participants complete a test at the beginning and end of the session.

Course Objectives

At the end of this course participants will be able to;

  • Distinguish between eligible and ineligible assets
  • Identify permitted financial derivative instruments
  • Describe and apply the UCITS rules on investment restrictions and risk spreading
  • Calculate position exposure, global exposure and counterparty risk exposure
  • Discuss how Value-at-Risk (VaR) is used
  • Apply the UCITS exposure limits
  • Discuss the required contents of the risk management process document
  • Outline on-going UCITS reporting requirements
  • Discuss the role of the company secretary in the UCITS framework
  • Outline briefly the possible developments that will affect the rules regarding eligible assets and investment restrictions

Who should attend? 

  • Experienced fund service providers who require a greater understanding of the UCITS (Undertakings for Collective Investment in Transferable Securities) Regulations and how they should be applied in practice.
  • Note: Participants should have a basic understanding of futures, options, FX forwards and swaps. 

Course Content (Summary)

  • The UCITS product overview
  • Risk management framework
  • Key investor information document (KIID)
  • General requirements
    • Liquidity
    • Eligible assets & investment restrictions
    • Risk spreading rules
  • Financial derivative instruments (FDI)
    • Permitted FDI
    • Commitment approach
      • Issuer concentration (position) exposure
      • Global exposure
    • Value at Risk (VaR) approach
      • General principles
      • Quantitative and qualitative requirements
      • Additional safeguards and disclosures
    • OTC counterparty risk exposure
    • Cover rules
    • Annual FDI report

Trainer Profile

Alan Farrell, FCCA, is the founder of Quickstep Consulting. He has over 20 years experience in the funds industry and has also lectured extensively on financial risk management and accounting topics.