Fair value - UCITS IV Provision

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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
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The vexed question — germane to those considering the meaning of financial derivative instrument under UCITS IV of what constitutes “fair value” was first addressed as long ago as 2005 by CESR (as it then was):

The fair value of an OTC derivative corresponds to the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

It has been a long old road with many twists and turns, but as far as this bear of little brain can make out, that’s more or less where we’ve ended up in the year of our Lord 2017.


More information, if you can bear it, at Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015. If you are like me, the very title of this instrument will help you to conclude you will not be able to bear it.

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