Distinguishing between the rules applicable to UCITS and those to NURS is a critical component of effective fund management and regulatory compliance. In the following table, we highlight the UCITS rules that do not apply to NURS, providing a side-by-side comparison for an easier understanding of these differences.
Introduction
| Rule | Note |
|---|---|
| Asset Eligibility | |
| Assets must be UCITS eligible asset types | NURS have wider range of eligible assets, including property and gold. |
| CIS must be UCITS or equivalent non-UCITS CIS | NURS have wider range of eligible CIS, including NURS equivalent and indeed into unregulated schemes (so long as aggregate in unregulated schemes and unapproved transferable securities is in aggregate below 20% of the NAV). |
| CIS must invest max. 10% in other CIS | NURS can invest in CIS which have max 15% in other CIS. |
| FDI must have eligible underlyings | NURS have wider range of derivatives eligible underlying, including on property and gold. |
| Approved Markets | |
| 10% max. in unapproved securities and MMI | For NURS, it is a 20% rule and also includes unregulated funds. |
| 10% max. in securities to be listed within one year, excl. 144A securities | Not applicable |
| Ownership - Concentration and Significant influence | |
| 20% max. of voting shares per single issuing body | Significant influence / concentration rules do not apply to NURS |
| 10% max. of non-voting shares issued by single issuing body | |
| 10% max. in debt securities and MMI issued by a single issuing body | |
| 25% max. in the units in issue of any single CIS | |
| Diversification | |
| 10% max. in securities or money market instruments issued by the same body | The NURS Rule is at UL_Issuer level, where as in the UK, the UCITS Rule is at UL_Issuer Group level. |
| 40% max. in securities and MMI of issuing bodies in which more than 5% is in | Only the 10% rule applies to NURS |
| Max 80% in bonds of credit institutions with special public supervision in which more than 5% is | Not applicable |
| 20% max. in any single CIS | For NURS, the limit is max 35% in any one CIS. There is also the max 20% in any one CIS which is not UCITS, NURS or NURS equivalent. |
| 30% max. in CIS which are not UCITS | No such rule for NURS |
| Counterparty Exposure | |
| 5% max OTC derivatives with eligible counterparties | For NURS, only the 10% limit applies and to all counterparties. |
| 10% max OTC derivatives with credit institutions | |
| Aggregated Exposure | |
| Max 20% aggregated underlying issuer group exposure | Aggregated exposure rule doesn’t apply to NURS |
| Borrowing | |
| UCITS 37: Temporary Borrowing Rules | UCITS can have permanent borrowing |
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