Asset managers will be required to undertake strict due diligence to verify and document the underlying securities used in Ucits funds, especially when using complex structured products and derivatives

The European Securities and Markets Association (Esma) has introduced significant amendments to the Ucits Eligible Assets Directive (EAD), which sets the standards for permissible investments by Ucits funds across Europe. This will require asset managers to undertake rigorous due diligence to verify and document the underlying securities, especially when utilising complex structured products and derivatives The reforms are aimed at redefining permissible investment approaches and are expecte