1. Iveta Prostrednik Austrian Financial Market Authority Challenges of Collective Investment Business in CEE 27-28 October 2011 – Kyiv Workshop – 3rd session First experiences with the implementation of UCITS IV in Austria from a regulatory point of view

2. Implementation of UCITS IV New Investment Funds Act Entered into force on 1 September 2011 Increased demands on management companies: -Risk management -Compliance -Conflicts of interest -Personal transactions Increased demands on authorities: -Enhanced cooperation of member state authorities -Reduction of time limits for authorisation 2 Iveta Prostrednik 27-28 October 2011 – Kyiv

3. 3 New demands on authority Master-Feeder structure Cross-border mergers Management Company Passport Umbrella construction KID (Key Investor Information Document) Notification procedure new Iveta Prostrednik 27-28 October 2011 – Kyiv

4. Notification procedure - outgoing Documents sent by the investment fund management company Document check – 10 days limit Package sent to the host authority Currently in 4 countries (Germany, United Kingdom, Czech Rep., Switzerland) 4 Iveta Prostrednik 27-28 October 2011 – Kyiv

5. Notification procedure incoming Notification carried out by the foreign authority Electronic means – via e-mail Language: German and English (KID only German) 5 days limit Published on the FMA – homepage Current status: 60 notifications from Ireland, Luxemburg, France, Germany 5 Iveta Prostrednik 27-28 October 2011 – Kyiv

6. Notification of Non-UCITS 6 Iveta Prostrednik 27-28 October 2011 – Kyiv National regulation (not based on Directive) Carried out by the investment company, resp. management company Prospectus must be approved by Austrian bank (Representative) Paper form Language: only German Distribution of new Non-UCITS Funds: 4 months limit Changes to prospectus: 2 months limit Published on the FMA – homepage

7. Conclusion Aditional regulation in future (UCITS V, AIFM) Change of attitude in management companies necessary (e.g. risk management) Increased demands on authorities Iveta Prostrednik 27-28 October 2011 – Kyiv 7

8. Contact FMA Austrian Financial Market Authority Dr. Iveta PROSTREDNIK Prudential Supervision of Collective Investment Undertakings iveta.prostrednik@fma.gv.at 8 Iveta Prostrednik 27-28 October 2011 – Kyiv