ESMA · ESMA_QA_1140 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

In the case of government bonds, can the 20% limit be deemed to apply to each different issue of bonds of the same issuer?

Answer

[ESMA 34-43-392 UCITS Q&A, section 3, Q&A 6g] No. The limit applies to the issuers and not to the issue. Accordingly, exposure to any one government issuer, or any individual issuer, is limited to 20% of the net asset value of the UCITS.

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.

Similar Q&As

More Q&As on this topic

📋 Track EU financial regulation continuously

Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.

14-day free trial. No credit card required.