ESMA_QA_1116

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1116

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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 offers advice to the UCITS management company on the composition of the underlying of the financial derivative instrument or the UCITS’ investment portfolio but any investment decision must be approved by 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 5e] No, provided that the UCITS management company expressly approves any investment decision in advance.

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