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UCITS
schemes are Undertakings for
Collective Investment in
Transferable Securities. They are
collective investment portfolios
exclusively dedicated to the
investment of assets raised from
investors.
The
funds are authorised as UCITS
schemes in accordance with the
European UCITS Directive. The
UCITS Directive aims to establish
a defined level of investor
protection for retail funds. This
is achieved through strict
investment limits, capital and
disclosure requirements, as well
as asset safe-keeping and fund
oversight provided by an
independent depositary. UCITS
benefit from a passport allowing
them, subject to notification, to
be offered to retail investors in
any EU jurisdiction once
authorised in one Member State.
The success of UCITS can best be
seen from the fact that there have
not been notable financial
scandals involving UCITS. UCITS
has provided a solid underpinning
for a well-regulated fund
industry. Recent trends in the
industry are, however, changing
the risk-features of the
business.
These trends include: |
