What changed between the plenary report and the adopted text

Removed:The competent authority of the UCITS home Member State shall, without undue delay, inform the competent authority of the UCITS host Member State, ESMA and, if there are potential risks to the stability and integrity of the financial system, the ESRB of the powers exercised and its findings.’

Removed:4. ESMA may request the competent authority to submit, within a reasonable timeframe, explanations to ESMA in relation to specific cases, which pose a serious threat to investor protection, threaten the orderly functioning and integrity of financial markets or pose risks to the stability of the whole or part of of financial system.’;

Removed:(9a) in Article 101(1), the first subparagraph is replaced by the following:

Removed:‘1. The competent authorities of the Member States shall cooperate with each other and with ESMA and the ESRB whenever necessary for the purpose of carrying out their duties under this Directive or of exercising their powers under this Directive or under national law.’;

Removed:(10) the following Article is inserted:

Removed:‘ Article 101a

Removed:1. By … [12 months before the date of the review referred to in Article 110a] ESMA shall ▌conduct a one-off comprehensive peer review analysis of the supervisory activities of the competent authorities in relation to the application of Article 13. That peer review analysis shall focus on the measures taken to prevent that management companies, which delegate performance of portfolio management or risk management to third parties located in third countries, become letter-box entities.

Removed:2. When conducting the peer review analysis, ESMA shall use transparent methods to ensure an objective assessment and comparison between the competent authorities reviewed.’;

Removed:(11) the following Article 110a is inserted:

Removed:‘ Article 110a

Removed:By [Please insert date = 40 months after the entry into force of this Directive] and following the peer review and analysis referred to in Article 101a and the report produced by ESMA in accordance with Article 13(4), the Commission shall initiate a review of the delegation regime laid down in Article 13 with regard to preventing the creation of letter-box entities in the Union.’;

Removed:(12) Article 112a is amended as follows:

Removed:(a) in paragraph 1, the following subparagraph is added:

Removed:‘The power to adopt the delegated acts referred to in Article 13 shall be conferred on the Commission for a period of four years from [Please insert the date of entry into force of this Directive.]’;

Removed:(b) in paragraph 3, the first sentence is replaced by the following:

Removed:‘The delegation of power referred to in Articles 12, 13, 14, 18a, 20a, 26b, 43, 50a, 51, 60, 61, 62, 64, 75, 78, 81, 95 and 111 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.’;

Removed:(c) in paragraph 5, the first sentence is replaced by the following:

Removed:‘A delegated act adopted pursuant to Articles 12, 13, 14, 18a, 20a, 26b, 43, 50a, 51, 60, 61, 62, 64, 75, 78, 81, 95 and 111 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of three months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or of the Council.’;

Removed:(13) Annex I is amended as set out in Annex III to this Directive;

Removed:(14) The text in Annex IV to this Directive is added as Annex IIA.

Removed:Transposition

Removed:1. Member States shall adopt and publish, by [Please insert date = 24 months after the entry into force of this Directive] at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions.

Removed:2. They shall apply those provisions from […].

Removed:3. When Member States adopt those provisions, they shall contain reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

Removed:4. Member States shall communicate to the Commission the text of the main measures of national law which they adopt in the field covered by this Directive.

Removed:Entry into force

Removed:This Directive shall enter into force on the 20th day following that of its publication in the Official Journal of the European Union.

Removed:Addressees

Removed:This Directive is addressed to the Member States.

Removed:Done at Brussels,

Removed:For the European Parliament For the Council

Removed:The President The President

Removed:In Annex I of Directive 2011/61/EU, the following points are added:

Removed:‘(ca) management of joint ventures and of mandates in respect of immovable property

Removed:3. Originating loans.

Removed:4. Servicing securitisation special purpose entities.’

Removed:In Directive 2011/61/EU, the following is added:

Removed:‘ANNEX V

Removed:LIQUIDITY MANAGEMENT TOOLS AVAILABLE TO AIFMs MANAGING OPEN-ENDED AIFs

Removed:(1) Suspension of redemptions and subscriptions: suspension of redemptions and subscriptions implies that investors are temporarily unable to redeem or purchase fund’s units or shares.

Removed:(2) Redemption gates: a redemption gate is a temporary restriction of the right of shareholders to redeem their units or shares. This restriction is partial, so that investors can only redeem a certain portion of their units or shares.

Removed:(3) Notice periods: a notice period refers to the period of advance notice that investors must give to fund managers when redeeming their units or shares.

Removed:(4) Redemption fees: a redemption fee is a pre-determined fee charged to investors when redeeming their fund’s units or shares.

Removed:(5) Swing pricing: swing pricing can be used to adjust the price of units or shares in an investment fund so that it reflects the cost of fund transactions resulting from investor activity.

Removed:(6) Anti-dilution levy: an anti-dilution levy is a charge applied to individual transacting investors, payable to the fund, to protect remaining investors from bearing the costs associated with purchases or sales of assets because of large inflows or outflows. An anti-dilution levy does not involve any adjustment to the value of the fund’s shares. The levy shall be calculated taking into consideration ongoing liquidity costs and market conditions.

Removed:(7) Redemptions in kind: redemptions-in-kind allow the fund manager to meet a redemption request by transferring securities held by the fund, instead of cash, to the redeeming shareholders.

Removed:(8) Side pockets: side pockets allow illiquid investments to be separated from remaining liquid investments of the investment fund.’

Removed:In Annex I of Directive 2009/65/EC, Schedule A, the table, point 1.13 is replaced by the following:

Removed:In Directive 2009/65/EC, the following is inserted:

Removed:‘ANNEX IIA

Removed:LIQUIDITY MANAGEMENT TOOLS AVAILABLE TO UCITS

Removed:(1) Suspension of redemptions and subscriptions: suspension of redemptions and subscriptions implies that investors are temporarily unable to redeem or purchase fund’s units.

Removed:(2) Redemption gates: a redemption gate is a temporary restriction of the right of unitholders to redeem their units . This restriction is partial, so that investors can only redeem a certain portion of their units.

Removed:(3) Notice periods: a notice period refers to the period of advance notice that investors must give to fund managers when redeeming their units.

Removed:(4) Redemption fees: a redemption fee is a fee pre-determined to investors when redeeming their fund’s units.

Removed:(5) Swing pricing: swing pricing can be used to adjust the price of units in an investment fund so that it reflects the cost of fund transactions resulting from investor activity.

Removed:(6) Anti-dilution levy: an anti-dilution levy is a charge applied to individual transacting investors, payable to the fund, to protect remaining investors from bearing the costs associated with purchases or sales of assets because of large inflows or outflows. An anti-dilution levy does not involve any adjustment to the value of the fund’s units.

Removed:(7) Redemptions in kind: redemptions-in-kind allow the fund manager to meet a redemption request by transferring securities held by the fund, instead of cash, to the redeeming unitholders.

Removed:(8) Side pockets: side pockets allow illiquid investments to be separated from remaining liquid investments of the investment fund.’