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Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 27 May 2019 - onwards
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Schedule 3 Conditions for Collateral Received by a UCITS

Regulation 24(1)

The conditions for the receipt of collateral by a UCITS, to which Regulation 24 refers, are the following:

1. Liquidity

Collateral received, other than cash, should be highly liquid and traded on a regulated market or multilateral trading facility with transparent pricing in order that it can be sold quickly at a price that is close to its pre-sale valuation. Collateral that is received should also comply with the provisions of Regulation 74 of the UCITS Regulations;

2. Valuation

Collateral that is received should be valued on at least a daily basis and assets that exhibit high price volatility should not be accepted as collateral unless suitably conservative haircuts are in place;

3. Issuer Credit Quality

Collateral received should be of high quality. The responsible person shall ensure that -

(i) where the issuer was subject to a credit rating by an agency registered and supervised by ESMA that rating shall be taken into account by the responsible person in the credi

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