Cash monitoring - UCITS V Provision

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UCITS V Anatomy


In a Nutshell Clause 22(4):

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UCITS V full text of Clause 22(4):

22(4). The depositary shall ensure that the cash flows of the UCITS are properly monitored, and, in particular, that all payments made by, or on behalf of, investors upon the subscription of units of the UCITS have been received, and that all cash of the UCITS has been booked in cash accounts that are:

(a) opened in the name of the UCITS, of the management company acting on behalf of the UCITS, or of the depositary acting on behalf of the UCITS;
(b) opened at an entity referred to in points (a), (b) and (c) of Article 18(1) of Commission Directive 2006/73/EC (EUR Lex); and
(c) maintained in accordance with the principles set out in Article 16 of 2006/73/EC (EUR Lex).

Where the cash accounts are opened in the name of the depositary acting on behalf of the UCITS, no cash of the entity referred to in point (b) of the first subparagraph and none of the own cash of the depositary shall be booked on such accounts.
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Resources: UCITS IV (2009/65/EC (EUR Lex)) | UCITS V (2014/91/EU (EUR Lex)) | ESMA Guidance on UCITS | Depositary comparison under AIFMD and UCITS
Navigation - UCITS IV: 50(1)(g) Financial derivative instruments
Navigation - UCITS V: 22(2) Written contract with depositary | 22(3) (subscriptions, redemptions, valuation by depositary) | 22(4) (cash monitoring | 22(5) (safekeeping by depositary) | 22(7) (no reuse of assets by depositary) | 22a (delegation of depositary functions)

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Directive 2006/73/EC (EUR Lex) is of course the MiFID Implementing Directive. This function may not be delegated by the depositary under Article 22a