The Undertakings for Collective Investment in Transferable Securities (UCITS) Directive has played a key role in the development of the European investment funds industry, creating a harmonized European framework to regulate investment funds that raise capital from the public.  Commonly known as “UCITS V,” the latest update of the UCITS Directive enacted in July 2014 will introduce reforms in three main areas: depositaries, remuneration and national sanction regimes.  The UCITS V Directive must be implemented by March 18, 2016.  In the U.K., while the Financial Conduct Authority is responsible for implementing changes to its rules pertaining to the more technical elements of the UCITS V Directive, the U.K. government’s economic and finance ministry – HM Treasury (HMT) – is responsible for transposing the more structural elements of the UCITS V Directive into national law.  This article outlines HMT’s proposals for transposing UCITS V into U.K. law and discusses the likely impact on the industry arising from compliance with the relevant provisions, as set out in a consultation paper published by HMT on October 23, 2015.  The proposals are directly applicable to fund managers currently managing UCITS funds or contemplating the launch of UCITS products in the future.  For more, see “FCA Consults on Implementation of UCITS V Provisions Applicable to Managers,” Hedge Fund Law Report, Vol. 8, No. 36 (Sep. 17, 2015); and “The Implications of UCITS IV Requirements for Asset Management Functions,” Hedge Fund Law Report, Vol. 4, No. 36 (Oct. 13, 2011).