The European Securities and Markets Authority (ESMA) has submitted its draft implementing technical standards on penalties and measures under UCITS V to the European Commission for endorsement. UCITS (“undertakings for the collective investment in transferable securities”) are investment funds regulated at European Union level, which account for around 75% of all collective investments by small investors in Europe, legislated by Directive 2014/91/EU.

The UCITS Directive required ESMA to develop draft implementing technical standards for procedures and forms for submitting information regarding penalties and measures, as follow:

• national competent authorities (NCAs) must provide annually aggregated information regarding all penalties and measures to ESMA; and
• administrative penalties or measures that are disclosed to the public by NCAs must also be reported to ESMA.

ESMA did not conduct an open public consultation on the draft standards since they affect NCAs, not market participants.

UCITS V and these technical standards are expected to apply from 18 March 2016.