The outlined provisions obligate Member States to establish prudential regulations for management companies overseeing UCITS, ensuring they adhere to robust administrative and accounting systems. These companies must implement stringent internal controls for electronic data processing, in compliance with applicable digital operational resilience regulations, and safeguard against conflicts of interest.

Furthermore, management companies authorised for discretionary portfolio management are restricted from investing clients' portfolios in their own managed collective investment undertakings without prior client approval. The Commission will issue delegated acts and ESMA may develop technical standards to standardise compliance across jurisdictions.