ESMA_QA_1115

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1115

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Regulatory Context

Regulation : UCITS

Level 1 Regulation: Undertakings for Collective Investment in Transferable Securities Directive (UCITS) Directive 2009/65/EC

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Disclosures

Subject Matter: Financial derivative instruments - KIID

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Question

Submission Date: 09 January 2015

For the purposes of paragraph 39 of the guidelines, would the counterparty to a financial derivative instrument be considered as having discretion over the composition of the underlying of the financial derivative instrument under the following arrangement? The counterparty to the financial derivative instrument can decide on the composition of the underlying of the financial derivative instrument or the UCITS investment portfolio without the prior consent of the UCITS management company.

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ESMA Answer

Answer Date: 09-01-2015

[ESMA 34-43-392 UCITS Q&A, section 3, Q&A 5d] Yes, because the counterparty to the financial derivative instrument has discretion over the composition of the underlying of the financial derivative instrument or the UCITS’ investment portfolio.

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This document was automatically extracted from the ESMA EMIR Q&A database.