BNP completes segregation of UCITS assets

BNP Paribas Securities Services has completed the segregation of clients’ UCITS assets held under depositary as part of the UCITS V directive.

Assets held under depositary in France, Germany, Ireland, Italy, Luxembourg, the Netherlands and the UK have all been segregated as part of the measure.

The UCITS V measure states that when safekeeping is either fully or partially delegated to a third party, the depositary must ensure the third party complies with segregation requirements to ensure that it is distinguishable from those of other clients.

The development marks the end of the migration process for BNP Paribas having started segregation in December 2015.

Under new UCITS V rules that came into effect on March 18, EU member states will have 18 months to implement further directives that officially come into force on March 18 2018. UCITS V aims to address three main issues of UCITS fund legislation namely depositaries, remuneration principles and national sanction regimes.

Arnaud Claudon, Global head of depositary and fiduciary services at BNP Paribas Securities Services, said, “We welcome the harmonisation and clarification of depository functions and liabilities introduced by UCITS V and the added investor protection the directive brings.”

“As well as today’s announcement that we have finished segregating UCITS assets, we have been working very closely with each of our clients to complete the joint implementation projects, well ahead of the anticipated effective date of the level II measures in October 2016.”