AMF publishes instructions, completing transposition of UCITS IV Directive

21 December 2011

The AMF instructions governing the authorisation and operation of UCITS, non-UCITS and real estate collective investment schemes have been amended and now incorporate all the new measures introduced into French law.

The main new measures introduced in the instructions are:

• cross-border mergers for UCITS;
• cross-border master-feeder funds for UCITS;
• the new passporting procedure in France for foreign UCITS;
• replacement of the simplified prospectus with the Key Investor Information Document (KIID) for all collective investment schemes targeting retail investors;
• the establishment of SICAVs and SPPICAVs (open-ended real estate investment companies) as simplified joint stock companies.

Clarification was additionally provided on exchange-traded funds. The AMF has also simplified the presentation of the instructions, so there is now only one for each major category of collective investment scheme targeting retail investors:

• one covering UCITS: Instruction 2011-19 on authorisation procedures, establishment of a KIID and a prospectus, and the periodic reporting requirements of French UCITS and foreign UCITS marketed in France;
• one covering non-UCITS: Instruction 2011-20 on authorisation procedures, establishment of a KIID and a prospectus, and the periodic reporting requirements of non-UCITS;
• one covering collective investment schemes for employees: Instruction 2011-21 on authorisation  procedures, establishment of a KIID and a prospectus, and the periodic reporting requirements of collective investment schemes for employees;
• one covering approved venture capital collective investment schemes: Instruction 2011-22 on authorisation procedures, establishment of a KIID and bylaws, and the periodic reporting requirements of approved venture capital funds, innovation funds and local investment funds;
• one covering real estate collective investment schemes: Instruction 2011-23 on authorisation procedures, establishment of a KIID and a prospectus, and the periodic reporting requirements of real estate collective investment schemes.

The Autorité des Marchés Financiers has also published Instruction 2011-15 on procedures for calculating the global exposure of UCITS, in order to implement CESR’s Guidelines on Risk Measurement and the Calculation of Global Exposure and Counterparty Risk for UCITS, published on 28 July 2010, and ESMA’s Guidelines to competent authorities and UCITS management companies on risk measurement and the calculation of global exposure for certain types of structured UCITS, issued on 14 April 2011.

This instruction replaces Instruction 2006-04 of 24 January 2006 on the procedures for calculating the exposure of UCITS to derivative financial instruments.

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