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ATLAS Funds Training

For comprehensive UCITS Rules Analysis click here.

Introduction

Listed below are the UCITS rules set up in HighWire.

Against each you will find:

  • A link to the comprehensive analysis
  • A video link to the regulatory analysis of each rule
  • A video link for how to clear common breaches for each rule
  • A quick hint on causes of common breaches
  • A link to the system data governance checks required to ensure system data quality
UCITS Rules
FW Rule NumberUCITS Rules Rule and Documentation LinkAtlas VideoBreach Resolution PPTQuick Hint to Resolve Erroneous
Breaches / Data Issues		Relevant Data
Governance Check
UCITS 01No acting as guarantorUCITS01
No granting loans
UCITS 0.0: No Ineligible Assets for UCITS
UCITS 01.1: No precious metals
UCITS 01.2: No certificates representing precious metals
UCITS 01.4: No commodities
UCITS 01.5: No Physical Short Selling
UCITS 02UCITS 02.1: Securities must be transferable securitiesUCITS02If a standard type of security that should be automatically defaulted as Transferable, this should be updated for in the RCA by the client’s projects team. RCA. Is transferable

Otherwise, for manually considered complex instruments, this needs ….[added to white list??]
UCITS 03UCITS 03.1: Closed end funds must be regulatedUCITS03If the fund invested into is a UCITS fund or is equivalent to a UCITS fund this must be marked as such in the security master.
UCITS 03.2: Closed end funds must have segregation of assets
UCITS 03.3: Closed end funds must have appropriate governance mechanisms
UCITS 04UCITS 04.1: MMI must be approved MMIUCITS04If this requirement is met, then update in equity master, field. Custom Attribute. Max investment in other CIS.
UCITS 05UCITS 05.1: CIS invested into which are not UCITS must be equivalent to UCITSUCITS05
UCITS 05.2: CIS invested into must invest max. 10% of their NAV in other CIS
UCITS 06UCITS 06.1: Deposits must have a maturity of less than 12 months or be repayable upon demandUCITS06If the deposit is with a deposit taker that is an approved credit institution, then update the deposit taker in the company master. Field Is. Approved Deposit Taker = True.
UCITS 06.2: Deposits must be made with acceptable credit institutions
UCITS 07UCITS 07.1: Derivatives must have eligible underlyingsUCITS07
UCITS 07.2: OTC derivatives must be with acceptable counterparties
UCITS 07.3: OTC derivatives must be capable of reliable valuation
UCITS 08UCITS08If the counterparty is a valid counterparty, this needs reflected in the Company Master, as either a 5% or 10% counterparty.
UCITS 09UCITS09If a standard type of derivative that is capable of valn, this should be updated for in the RCA by the client’s projects team.

Otherwise, for manually considered complex instruments, this needs marked in derivative master that it has reliable valuation, if agreed by client.
UCITS 10UCITS 10: At Manager level, Max 20% of the Voting Shares issued by any one issuerUCITS10
UCITS 11UCITS 11a: At Portfolio level, Max 10% of the non-voting shares issued by any one issuer (excl. GOPS)UCITS11
UCITS 11b: At Umbrella Level, Max 10% of the non-voting shares issued by any one issuer (excl. GOPS)
UCITS 12 - 14UCITS 12 - 14 Cover all: Max 10% of the issued capital of any one securityIf result is showing a massive percentage, e.g. 100000%, then this is because the issued capital data is missing and needs manually researched.
UCITS 12UCITS 12a: At Portfolio level, Max 10% of the Debt Securities issued by any one issuer (excl. GOPS)UCITS12
UCITS 12b: At Umbrella level, Max 10% of the Debt Securities issued by any one issuer (excl. GOPS)
UCITS 13UCITS 13a: At Portfolio level: Max 10% of the MMI issued by any one issuer (excl. GOPS)UCITS13
UCITS 13b: At Umbrella level: Max 10% of the MMI issued by any one issuer (excl. GOPS)
UCITS 14UCITS 14: Umbrella - 10% max. in Debt Securities issued by a Single Issuing BodyUCITS14Government bonds should not be included. If breaching issuer is a Government or Pubic Issuer, this needs update in the Company Master, field “Is GOPS”
UCITS 14a: At Portfolio level, Max 25% of the units in issue of any one CIS (portfollio), except for the Master
UCITS 14b: At Umbrella level, Max 25% NAV of the units in issue of any one CIS (portfolio), except for Master (excl. GOPS)
UCITS 15UCITS 15: Umbrella to scheme - 25% max. in the units in issue of any single CISUCITS15
UCITS 15: Feeders Scheme - 25% max. in the units in issue of any single CIS, except for Master
UCITS 15a: Max 10% NAV in Transferable Securities and approved MMI not on eligible market
UCITS 15b Max 10% NAV in Securities to be listed within one year, excl. 144A securities
UCITS 16UCITS 16a Issuer: Max 10% NAV in Securities & MMI issued by the same IssuerUCITS16Government bonds should not be included. If breaching issuer is a Government or Pubic Issuer, this needs update in the Company Master, field “Is GOPS”
UCITS 16b Issuer Group: Max 10% NAV in Securities & MMI issued by the same Issuer Group
UCITS 17UCITS 17 Issuer: Max 40% NAV in Securities & MMI where the exposure to the UL issuer is greater than 5% NAVUCITS17Index derivatives should not be being included. If included, …..
UCITS 18UCITS 18 Max 100% NAV Exposure to any one GOPS IssuerUCITS18If prospectus permits greater than 35% investment in the GOPS issuer, then this needs reflected in the scheme mandate.
UCITS 19UCITS 19: Max 35% NAV in the Securities of any one GOPS Issuer, unless the Issuer is a 100% GAPS IssuerUCITS19
UCITS 20UCITS 20ALT: If GOPS Issuer holding is >35%, minimum 6 GOPS issues held of that issuer groupUCITS20
UCITS 21UCITS 21: If GOPS Issuer holding is >35% NAV, minimum 6 GOPS issues held of any GOPS issuerUCITS21
UCITS 22UCITS 22: Max 25% NAV in Covered Bonds of any one IssuerUCITS22
UCITS 23UCITS 23: Max 80% NAV in Covered Bonds in which more than 5% is Invested in any one Issuer IssuerUCITS23
UCITS 24UCITS 24: Max 20% NAV in Deposits with any one Credit Institution
UCITS 25UCITS 25 Lux: Lux: A UCITS may hold ancillary liquid assets (Lux market practice - Max 49% NAV)UCITS25
UCITS 25: A UCITS may hold ancillary liquid assets (internal limit - max 10% NAV)
UCITS 25 v2: Feeder - 20% max in any single CIS other than the Master Fund
UCITS 26UCITS 26: Max 20% NAV in any one CIS, other than the Master FundUCITS26
UCITS 27UCITS 27: Max 30% NAV in aggregate in CIS which are not UCITSUCITS27If the counterparty is a valid counterparty, this needs reflected in the Company Master, as either a 5% or 10% counterparty.
UCITS 28UCITS 28 Cover All: Warning: Max 5% NAV in aggregate in OTC Derivatives with any one Counterparty GroupUCITS28
UCITS 28a: Max 5% NAV in aggregate in OTC Derivatives with any one Eligible Counterparties, other than a Credit Institution
UCITS 28b: Max 10% NAV in aggregate in OTC Derivatives with any one Eligible Counterparties, which is a Credit Institution
UCITS 29UCITS 29: Consolidated Exposure to any one Issuer Group (excl. Covered bonds & GAPS) must be less than 20% NAVUCITS29
UCITS 30UCITS 30: Consolidated Exposure to any one Issuer Group (incl. Covered bonds but excl. GAPS) must be less than 35% NAVUCITS30
UCITS 31UCITS 31: UCITS Global Exposure - Max 100% NAVUCITS31
UCITS 31: UCITS Global Exposure - Portfolio total exposure 200% NAV
UCITS 32UCITS 32 v1: 10% max. in negative cash (no netting)UCITS32
UCITS 32 v2: 10% max. in negative cash (with netting at currency level)
UCITS 32 v3: 10% max. in negative cash (full netting)
UCITS 32.1: Liquid Cover for Derivative Obligations
UCITS 32.2: Specific Cover for Derivatives Obligations
UCITS 33UCITS 33: Borrowings - Max 10% NAV in BorrowingsUCITS33Government bonds should not be included. If they are included in a breach, update the Company Master, field is GOPS.

Index derivatives should not be being included. If included, …..
UCITS 34UCITS 34.1: Borrowings must be temporary - 90 days continuousUCITS34
UCITS 34.2: Borrowings must be temporary - 90 days in 180
UCITS 35UCITS 35: No investment in CIS of the same Umbrella
UCITS 36UCITS 36: No investment in another sub-fund of the same Manager, unless permitted in prospectus
UCITS 37UCITS 37: Feeder Funds: Minimum 85% NAV in the Master FundUCITS37
UCITS 38UCITS 38: Feeder Funds - No derivatives other than for hedging
UCITS 39UCITS 39: Index Tracking Funds: Max 20% NAV in Securities & MMI issued by the same Issuer Group, except exceptionally 35% for one issuer
UCITS 40UCITS 40: Index Tracking Funds: Exceptionally, Greater than 20% NAV in Securities & MMI issued by the same Issuer Group, for one issuer only
UCITS 41UCITS 41: Index Tracking Funds: Exceptionally, Max 35% NAV in Securities & MMI issued by the same Issuer Group, for one issuer only
UCITS Feeder fundUCITS Feeder fund - no holdings other than Master, cash and derivatives
UCITS FOFUCITS FOF must not invest in a Feeder fund
UCITS FOF must not invest in a Fund of Fund