The UCITS IV Directive comes into force across the EU on 1 July 2011 and all Member States are required to have it transposed into local law by that date.

Some elements of the Directive will impose immediate operational requirements on the funds industry, some will be phased in and some elements are likely to have limited impact in the short term but could enable major changes in the longer term.

Few would disagree that we are in the throes of major changes in the global asset management industry. There are major forces reshaping the industry globally.

Acquisitions, mergers and spin-offs from banks are rapidly changing the playing field. This is driven by major regulatory changes, increased capital requirements and the changing economics of the business.

Progress towards the goal of a global set of international financial reporting standards has been steady. Since 2001, more than 100 countries have required or permitted the use of International Financial Reporting Standards (IFRS), while the remaining major economies have established timelines for convergence with, or adoption of IFRS.

In 2006, the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) agreed a Memorandum of Understanding (MoU) that described a programme to achieve improvements in accounting standards and substantial convergence between IFRS and US Generally Accepted Accounting Principles (GAAP).