UCITS Q&A: treatment of breaches of UCITS global exposure limit
21 August 2024 _ Regulatory & compliance
On 17 August 2021 the CSSF published an update of its UCITS Q&A in order to add a new section for Treatment of breaches of the UCITS global exposure limit.
In particular the following clarifications have been issued in relation to passive and active breaches of VaR limits:
- When a breach can be considered as passive,
- Which actions the managers have to take in case of passive breaches,
- Confirmation that passive breaches do not need to be reported to the CSSF
- Which information the UCITS must communicate to the CSSF upon occurrence of an active breach of VaR limits.
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The contents of this informative message are the result of the free interpretation, evaluation and appreciation of Pharus Asset Management SA and constitute simple food for thought.
Any information and data indicated have a purely informative purpose and do not in any way represent an investment advisory service: the resulting operational decisions are to be considered taken by the user in full autonomy and at his own exclusive risk.
Pharus Asset Management SA dedicates the utmost attention and precision to the information contained in this message; nevertheless, no liability shall be accepted for errors, omissions, inaccuracies or manipulations by third parties on what is materially processed capable of affecting the correctness of the information provided and the reliability of the same, as well as for any result obtained using the said information.
It is not permitted to copy, alter, distribute, publish or use these contents on other sites for commercial use without the specific authorization of Pharus Asset Management SA.
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