On 1 February 2016, the European Securities and Markets Authority (ESMA) published a consolidated Questions and Answers (Q&A) on the application of the Undertakings for the Collective Investment In Transferable Securities Directive (UCITS).

The consolidated Q&A include new questions on additional documents funds need to provide for UCITS V. This new Q&A also brings together the following four existing ESMA Q&As on UCITS:

• The Key Investor Information Document (KIID) for UCITS (2015/631)
• Q&A on ESMA’s guidelines on ETFs and other UCITS issues (2015/12)
• Notification of UCITS and exchange of information between competent authorities (2012/428); and
• Risk Measurement and Calculation of Global Exposure and Counterparty Risk for UCITS (2013/1950)

The UCITS Directive is a detailed, harmonised framework for investment funds that can be sold to retail investors through the EU. This means that funds authorised in one Member State can be marketed in another Member State using a passporting mechanism. Originally introduced in 1985, the UCITS rules have been revised several times, most recently via the UCITS V Directive which comes into force on 18 March 2016.