ESMA Publishes Final Report on UCITS Eligible Assets
Thursday, 26 June 2025
ESMA has today published its much-anticipated Final Report providing technical advice to the European Commission on the upcoming review of the UCITS Eligible Assets Directive (EAD).
Our policy team is currently reviewing this detailed and wide-ranging document and will provide a full analysis for members in the coming days, available via the Irish Funds Member Portal.
While there are no immediate changes, the report will be assessed by the European Commission as it considers possible amendments to the UCITS EAD as part of the upcoming review. A public consultation by the Commission is expected in the months ahead as part of this next phase.
Key aspects highlighted by the European Securities and Markets Authority (ESMA) in its Final Report include:
A proposed look-through approach as a fundamental criterion to determine the eligibility of asset classes for at least 90% of the UCITS portfolio
Flexibility to permit indirect exposures to alternative assets of up to 10%, subject to regulatory safeguards (e.g. on liquidity and valuation), aiming to enhance diversification and generating returns from uncorrelated asset classes.
Given the importance of maintaining the integrity of the global UCITS brand, Irish Funds will be committing significant resources to our advocacy activity on this issue in the coming years.
Members interested in learning more about our views can access our recent responses to the ESMA Call for Evidence and the European Commission’s Savings and Investments Union (SIU) consultation:
Irish Funds response to the ESMA Call for Evidence on the Eligible Assets Directive
Irish Funds response to the European Commission SIU consultation