Template:Ucits and reuse
Financial instruments held in custody for a UCITS V fund must be segregated, clearly identifiable in the custodian’s books and records as belonging to the UCITS and critically the depositary (or its delegate[1]) may not rehypothecate those assets for its own account.<ref>ESMA opinion on the subject. See also 22(7). Good note on it also from Matheson [https://www.matheson.com/images/uploads/publications/UCITS_V_Factsheet_on_Depositaries.pdf here.<ref>
A UCITS can re-use assets on certain conditions, such as that the re-use benefits the UCITS and is in the interests of unit-holders is covered by high quality, liquid collateral under a title transfer collateral arrangement, equal at least to the market value of the reused assets plus a premium. This prohibits PB-style re-hypothecation (which is of course allowed under AIFMD structures but allows UCITS to engage in securities lending.