The Greek Presidency reached today a provisional political agreement with the European Parliament on new EU rules on regulated investment funds regarding depositary functions, remuneration policies and sanctions. 

Welcoming today’s agreement, the President of the ECOFIN Yannis Stournaras said: “The agreement on the UCITS V Directive enhances investor confidence and protection by introducing additional safeguards as regards depositary functions, avoids excessive risk taking by establishing appropriate remuneration policies and harmonises at a European level administrative sanctions”

UCITS V introduces specific provisions on the depositary's safekeeping and oversight duties, it also sets out a list of entities that are eligible to act as UCITS depositaries and clarifies the role and liabilities of the depositary in the event of any loss of UCITS assets held in custody. In addition, it includes provisions on redress.  

The financial crisis has also brought attention to remuneration policies across the financial sector. UCITS V directive establishes new rules on remuneration that are consistent with sound and effective risk management and discourage excessive risk- taking. 

Finally, an important feature of the Directive is a new harmonized sanctions regime for breaches of UCITS rules.