The House of Representatives Approves the Bill on UCITS by Majority

The bill was approved by a majority of 45 deputies, with one deputy abstaining. Its primary goal is to modernize and harmonize the legal framework governing Undertakings for Collective Investment in Transferable Securities (UCITS) in line with existing legislation. This modernization aims to ensure greater security and transparency for investments in the securities market while enhancing the ability of these entities to mobilize savings and finance the national economy. This reform is part of broader efforts to strengthen the positioning of the Moroccan financial market as a regional platform. It seeks to enhance its attractiveness to foreign investors by establishing a more flexible legal framework that can adapt to the needs of market participants. Additionally, the bill aims to bolster the intervention capabilities of the Moroccan Capital Market Authority (AMMC) in overseeing UCITS management companies, deposit institutions, and individuals involved in the management or marketing of shares or units of these entities. To achieve these objectives, the bill introduces several reforms, including the expansion of UCITS assets, the creation of compartmentalized UCITS, enhanced investor protection measures, the establishment of participatory UCITS, and the regulation of UCITS with specific investment rules. Furthermore, it defines mechanisms for managing the liquidity risks of the assets held by these entities.