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Mont Vert Marc, Pune, India

+91 20 6524 2455

Mont Vert Marc, Pune, India


UCITS Fund Compliance Monitoring

UCITS Fund Compliance Monitoring

The Problem:

Equity Long only UCITS fund, an asset management client of SP consulting was confronting a challenge of managing manual process of UCITS compliance. Pitfalls of manual procedure are:

  • Lengthy and complex process
  • Time and resource consuming
  • Inaccuracy in reports

The Solution:

SP consulting with its compliance expert team came up with a solution of automated UCITS compliance system. An overview of the eligible investments and associated investment restrictions is stated in compliance system.

We identify different portfolio allocations and classify them into distinct types such as securities, money market and OTC derivativities. Their exposure is calculated. The resulting net asset value is combined and identified whether it is close to the set limit or exceeding the limit.

SQL queries are generated to retrieve the data quickly and efficiently. Excel VBA is used to upload the daily portfolio allocations.

For example:

  • Article 43 (3) of the fund law foresees that Max 35% NAV in securities and Money market instruments issued by states, municipalities or international bodies. If the NAV is close to the set limit i.e., for example 30% then an automated early warning email is sent to the  client and if the NAV is exceeding 35% then an automated email stating that the fund is breaching the  clause  is sent to the client.
  • Article 45 (2) of the fund law foresees that Must express mention of investment securities (in management regulations or instruments of incorporation) of government in which they intend to invest more than 35% of their assets.
  • Article 47 (3) states that If the NAV (Net asset Value) is likely to be highly volatile due to portfolio composition, disclosure should be made in the prospectus and marketing materials.

If any of the terms and conditions are not followed by the fund it is the breach of UCITS IV regulations and  an          automated email alerts are sent to the clients.

Benefits endeavored by automated compliance system:

  • Post trade UCITS compliance, a user friendly, automated framework allows the manager to monitor their daily UCITS investment restrictions.
  • Full, In-depth coverage of all asset classes.
  • Email alerts helps fund manager to keep their investment limits in check.
  • Whenever there’s regulatory change, our clients receive instant updates as our expert compliance team write and deploy the updated rules.
  • Boost in operational efficiency

Our asset management regulatory team can assist you at any stage of the life cycle of UCITS compliance.


Equity Long only UCITS Fund


Asset Management


Risk and Compliance


  • Complex manual process
  • Time and Resource consuming
  • Error Prone Process


Automated and integrated compliance system to monitor the eligibility of funds and investment restriction within the current regulatory framework of UCITS IV.


  • Easy to use automated compliance framework system
  • Email alerts sent to the clients in case of breaches any compliance clause

Technologies Used

  • Database: MS Access App for share point , SQL Azure as back end.
  • Computation: R
  • Dashboard, Reporting: Power BI