European Securities and Markets Authority Reports on Sanctions Imposed Under UCITS Directive

The European Securities and Markets Authority has published its second annual report on the sanctions imposed in 2018 under the Undertakings for Collective Investments in Transferable Securities Directive. The UCITS Directive requires national regulators to inform ESMA annually of information relating to all penalties and measures they have imposed under the Directive during the previous calendar year, which ESMA then compiles in a single annual report. The report includes an overview of the total number and amount of penalties imposed, as well as the particular UCITS Directive article to which they relate.

Bulgaria and Croatia incurred the highest number of penalties, with seven each. Italy incurred the highest total amount of penalties, totalling €1,828,000, including for infringements of requirements for Member States to prepare prudential rules that should be observed by management companies. Penalties were most commonly incurred for infringements of obligations concerning the investment policies of UCITS, including restrictions on the nature and quantity of investments that UCITS may hold and the need to employ risk-management processes to monitor the risk of their positions.

View ESMA's Report.
 
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