UCITS - ESMA updates its Q&As on the application of UCITS

On 3 February 2023, ESMA updated its Q&As on the Application of the UCITS Directive by including a question seeking clarification on the terminology used in the Q&A.

The new question (Question 5e) falls under the Issuer concentration section and asks if the term “body” referred to in the Q&As means “credit institution” as mentioned in Article 50(1)(f) of the UCITS Directive or if it includes any other counterparty which is not a credit institution.

The answer indicates that the term “body”” as referred to in Article 52(1)(b) means “credit institution” as mentioned in Article 50(1)(f) of the UCITS Directive. It confirms that the Q&A is only applicable in the context of Article 52(1)(b) and should not affect the meaning of the term “body” in other instances of the UCITS Directive.