AI Summary of Article 19
This text outlines the essential obligations for management companies engaged in cross-border collective portfolio management. Such companies must adhere to the regulatory framework of their home Member State, ensuring compliance with organisational rules, risk management procedures, and reporting requirements.
Furthermore, they are required to follow UCITS regulations regarding the establishment, operation, and governance of UCITS. Compliance entails adherence to investment limits, asset valuation, and the obligations outlined in the fund rules and prospectus. Both the management company and the competent authorities of the home Member State play vital roles in ensuring regulatory compliance and organisational effectiveness.
Article 19
1. A management company which pursues the activity of collective portfolio management on a cross-border basis by establishing a branch or under the freedom to provide services shall comply with the rules of the management company's home Member State which relate to the organisation of the management company, including delegation arrangements, risk-management procedures, prudential rules and supervision, procedures referred to in Article 12 and the management company's reporting requirements. Those rules shall be no stricter than those applicable to management companies conducting their activities only in their home Member State.
2. The competent authorities of the management company's home Member State shall be responsible for supervising compliance with paragraph 1.
3. A management company which pursues the activity of collective portfolio management on a cross-border basis by establishing a branch or in accordance with the freedom to provide services shall comply with the rules of the UCITS home Member State which relate to the constitution and functioning of the UCITS, namely the rules applicable to:
(a) the setting up and authorisation of the UCITS;
(b) the issuance and redemption of units and shares;