ESMA · ESMA_QA_1159 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

When assessing the diversification of the collateral, should re-invested cash collateral be aggregated with non-cash collateral?

Answer

[ESMA 34-43-392 UCITS Q&A, section 3, Q&A 6k] Yes. UCITS should aggregate non-cash collateral and re-invested cash collateral when assessing the diversification requirements of collateral received by 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.

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