ESMA Rules that UCITS May Not Invest In Unregulated Hedge Funds

November 22, 2012

In a further indication of policy orientation at European level that is seeking to limit the instruments that UCITS funds may invest in, on 20 November 2012, the European Securities and Markets Authority (“ESMA”) published a formal opinion on its interpretation of Article 50(2)(a) of the UCITS Directive (Directive 2009/65/EC) (the so-called “trash ratio”) which permits UCITS to invest up to 10% of its net assets in transferable securities and money market instruments, other than those eligible assets referred to in Article 50(1). This update examine’s the ESMA opinion.

Read “ESMA Rules that UCITS May Not Invest In Unregulated Hedge Funds.”