AI Summary of Article 14
The Article mandates that each Member State establish conduct rules for management companies, ensuring they operate in the best interests of the UCITS they manage and uphold market integrity. Key principles include acting honestly, exercising due diligence, managing resources effectively, avoiding conflicts of interest, and complying with regulatory requirements.
Furthermore, the Commission is empowered to adopt delegated acts to enforce these duties, while ESMA must report by 16 October 2025 on the cost structures for UCITS. This includes analysing fees borne by investors to ensure transparency and fairness in the management of these investment vehicles.
Article 14
1. Each Member State shall draw up rules of conduct which management companies authorised in that Member State shall observe at all times. Such rules shall implement at least the principles set out in this paragraph. Those principles shall ensure that a management company:
(a) acts honestly and fairly in conducting its business activities in the best interests of the UCITS it manages and the integrity of the market;
(b) acts with due skill, care and diligence, in the best interests of the UCITS it manages and the integrity of the market;
(c) has and employs effectively the resources and procedures that are necessary for the proper performance of its business activities;
(d) tries to avoid conflicts of interests and, when they cannot be avoided, ensures that the UCITS it manages are fairly treated; and
(e) complies with all regulatory requirements applicable to the conduct of its business activities so as to promote the best interests of its investors and the integrity of the market.
2. Without prejudice to Article 116, the Commission shall adopt, by means of delegated acts in accordance with Article 112a, measures with a view to ensuring that the management company complies with the duties set out in paragraph 1, in particular to: