ESMA_QA_1115
09/01/2015
Subject Matter
Financial derivative instruments - KIID
    For the purposes of paragraph 39 of the guidelines, would the counterparty to a financial derivative instrument be considered as having discretion over the composition of the underlying of the financial derivative instrument under the following arrangement? The counterparty to the financial derivative instrument can decide on the composition of the underlying of the financial derivative instrument or the UCITS investment portfolio without the prior consent of the UCITS management company.
    ESMA Answer
    09-01-2015

      [ESMA 34-43-392 UCITS Q&A, section 3, Q&A 5d]

      Yes, because the counterparty to the financial derivative instrument has discretion over the composition of the underlying of the financial derivative instrument or the UCITS’ investment portfolio.

      Status: Answer Published

      Additional Information

      Level 1 Regulation
      Undertakings for Collective Investment in Transferable Securities Directive (UCITS) Directive 2009/65/EC
      Topic
      Disclosures