ESMA · ESMA_QA_1137 Answer Published
KIID Collateral management
- Regulation
- Undertakings for Collective Investment in Transferable Securities Directive (UCITS) Directive 2009/65/EC
- Topic
- UCITS eligible assets and investment restrictions
- Submitted
- 2016-10-01
- Answered
- 2016-10-01
Question
Are tripartite agreements for collateral management in the context of efficient portfolio management techniques and OTC financial derivative transactions forbidden by paragraph 40(g) of the guidelines?
Answer
[ESMA 34-43-392 UCITS Q&A, section 3, Q&A 6d] No. Tripartite agreements are possible under paragraph 40(g) as long as there is no title transfer and the collateral is held by a third party custodian subject to prudential supervision and that is unrelated to the provider of the collateral.
This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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