Investment meaning

ARCHIVED: This Practice Note is archived and is no longer maintained. UCITS is the acronym for undertakings for collective investment in transferable securities. The expression derives from Directive (EC) 85/611 concerning the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (the Original UCITS Directive), which was adopted in 1985. The purpose of the Original UCITS Directive was to establish a single market for open-ended retail investment funds that offered enhanced protection for investors. The UCITS framework has been updated on several occasions, with the Management Company Directive 2001/107/EU adopted in 2002 and the Product Directive 2001/108/EU implemented in 2005 (together referred to as UCITS III); followed by implementation in 2011 of Directive 2009/65/EC (the UCITS Directive, also called UCITS IV), which repealed and replaced the Original UCITS Directive; and Directive 2014/91/EU (UCITS V), which was transposed into national law on 18 March 2016...

The suitability obligation All authorised firms are subject to a suitability obligation, which requires them to take reasonable steps to ensure that any personal recommendations, or decisions to trade, are suitable for their clients. The suitability obligation applies to: firms providing investment advisory services, and firms providing discretionary portfolio management services Firms providing non‑advised investment services will instead be subject to the appropriateness obligation (see Practice Note: Appropriateness). Firms must gather the information ‘necessary’ about their clients in respect of their: knowledge and experience in the investment field relevant to the type of investment or service, financial situation, and investment objectives For more information on the suitability obligation, see Practice Note Suitability. When does the obligation to provide a suitability report apply? In certain circumstances, firms are required to provide suitability reports to their clients under COBS 9.4...

Regulated activities and exclusions Section 19 of the Financial Services and Markets Act 2000 (FSMA 2000) bars any individual or entity from undertaking, or holding themselves out as undertaking, a regulated activity in the UK unless they are authorised or exempt under FSMA 2000 (the General Prohibition). Usefully, most activities specified in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO) are carved out by exclusions. Where you conduct a given activity in a manner that fits an exclusion, you will not contravene the General Prohibition. For additional detail on the General Prohibition, see Practice Notes The general prohibition and implications of its breach and Carrying on unauthorised business and breaching the general prohibition. Most RAO regulated activities are subject to exclusions that can be used where applicable. Exclusions fall into two groupings: exclusions tailored to a specific regulated activity; and exclusions that, in defined situations, span several regulated activities...

This Checklist is intended for situations where: a leasehold property is being purchased and the tenant (or a predecessor in title) entered into an agreement for lease prior to completion of the lease; or a reversionary interest is being bought and the reversioner (or a predecessor in title) entered into an agreement for lease before completion of an existing occupational lease, or an agreement for lease remains in place pending completion of a lease. In each case, the agreement for lease predates completion of the relevant lease. You should confirm whether any outstanding or continuing obligations in the agreement for lease (eg to rectify defects or undertake works) will bind the purchaser. Any surviving obligations that bind successors in title could adversely affect the property’s investment value. Note that this Checklist is not comprehensive and, depending on the nature of the transaction, other issues may arise from the agreement for lease and require consideration. This Checklist also does not address limitation periods...

The National Security and Investment Act 2021 A deal may fall within the ambit of the National Security and Investment Act 2021 (NSI Act 2021) and might require notification to the UK Government if it gives rise to potential national security issues. See further: The National Security and Investment Act 2021. This flowchart sets out a decision pathway to assess whether a transaction is captured by the NSI Act 2021. View or print a full-size PDF version...

Checklist This Checklist applies when acquiring a long leasehold interest carrying a capital value, rather than a shorter tenancy at an open market rent, which is unlikely to attract any capital value. A purchaser’s solicitor should examine the landlord’s right to forfeit the lease, as in some situations particular forfeiture clauses can render a lease unacceptable as security to a lender and, in turn, unsuitable for purchase. Could the landlord exercise forfeiture upon the tenant’s insolvency? Where the landlord holds a right to forfeit on a tenant insolvency event, the property will not be acceptable security to a lender and is therefore inappropriate as an investment acquisition. Consequently, such a lease is neither appropriate for lending purposes nor for any purchase...

Mergers The Commission has authorised Gala Investment SAS and ICG plc to take joint control of Magellan Partners (M.12095) following a phase I investigation—see further, Midday Express The Commission has received an official notification for Banca CF+/Banca Sistema (M.12102) under the simplified merger procedure NOTE—For all current merger investigations before the Commission, see further, EU mergers—ongoing cases tracker State aid Applying EU State aid rules, the Commission has approved an amendment to a German renewable energy scheme first approved in December 2022, increasing the budget for the biomass and biogas support scheme by €7.9bn—see further, Midday Express NOTE—For all active State aid decisions and ongoing formal State aid investigations, see further, EU State aid decisions—ongoing cases tracker Upcoming dates For the full timetable of forthcoming EU competition developments, see further, EU Competition calendar...

In this issue: Air emissions and climate change Energy for environmental lawyers Environmental disputes and proceedings Environmental permits and consents Environmental taxes, reliefs and incentives ESG and sustainability Hazardous substances and chemicals Marine Nature, biodiversity and habitat conservation Waste Waste producer responsibility regimes Water, flooding and drainage Daily and weekly news alerts New and updated content Air emissions and climate change DESNZ releases quarterly waste data reporting template for the UK ETS. The Department for Energy Security and Net Zero (DESNZ) has issued a template for quarterly waste data submissions under the UK Emissions Trading Scheme (UK ETS). It is designed for waste operators to use when sending quarterly data reports to their regulator during the voluntary monitoring, reporting and verification (MRV) period. See: LNB News 19/02/2026 50. AFME responds to European Commission consultation on climate resilience legislative framework. The Association for Financial Markets in Europe (AFME) has provided...

The Czech Republic v Diag Human SE and another [2024] EWHC 708 (Comm) What are the practical implications of this case? The judgment offers practical guidance on how the ‘reasonable diligence’ condition in AA 1996, s 73(1) operates. It warns parties in arbitration to remain vigilant to unfolding factual matters that may demand further enquiry, in order to satisfy the ‘reasonable diligence’ requirement and maintain an arguable case that is not rendered time-barred under AA 1996, s 73(1). It also emphasises the elevated duty of care owed by investment arbitration practitioners when advising clients in arbitral proceedings, so as to avoid claims of insufficient diligence in the conduct of jurisdictional challenges before the tribunal. What was the background? ...

This Practice Note examines core aspects of the UK framework for money market funds (MMFs) that stems from Regulation (EU) 2017/1131 (the EU MMF Regulation). It also looks at suggested changes to the framework, with the Financial Conduct Authority (FCA), HM Treasury and the Bank of England (BoE) working jointly to bolster its resilience and align it with post‑Brexit regulatory objectives. For background on the EU MMF Regulation, see Practice Note: EU MMF Regulation—essentials. What is an MMF? Money market funds (MMFs) are investment funds that invest in short‑term debt instruments and so play a significant role in the short‑term financing of the economy. In particular, MMFs are open‑ended, liquid investment funds that invest in fixed income through short‑term debt, for example money market instruments issued by banks, governments or companies (including treasury bills, commercial paper and certificates of deposit) which pay interest. They therefore form an important connection between demand for, and the supply of, short‑term debt. Further information on the eligible assets of an MMF is...

Over the course of the past month, annual adjustments have been made to merger control thresholds in Canada, Italy and the Philippines, while Montenegro has revamped its regime, introducing swifter timetables and more adaptable filing provisions. Canada—thresholds remain the same in 2026 On 2 March 2026, the Canadian Competition Bureau (CCB) confirmed, after its yearly review, that Canadian merger notification thresholds will stay exactly as they are for 2026. The thresholds remain (in brief): size of transaction test: the target must be, or control, an operating business in Canada with more than CDN$93m (approximately €58.9m/US$66.6m) in Canadian assets (book value) or gross revenue produced by those assets from sales in, from or into Canada (ie domestic plus export sales), and size of parties test: all parties and their affiliates (in aggregate) must together hold over CDN$400m (approximately €253.4m/US$286.3m) in Canadian assets or gross revenues derived from sales in, from or into Canada (ie domestic sales, exports and imports) (this threshold is unchanged and...

CASE HUB See more, timeline, commentary and connected cases. Case facts European Commission merger inquiry under Article 14(1) EUMR into inaccurate or misleading information supplied by KKR during the Commission’s 2024 review of KKR’s acquisition of NetCo. Latest developments On 24 July 2025, the Commission opened its investigation. Parties KKR & Co. Inc (KKR): Headquartered in the US, KKR is a global investment firm providing alternative asset management alongside capital markets and insurance services. NetCo: Based in Italy, NetCo is a newly established company that comprises FiberCop—presently jointly controlled by KKR and TIM—as well as TIM’s primary and backbone fixed-line network...

The Investment Property Forum (IPF) produced this precedent because they recognise it is very common for the parties to a prospective property deal to enter into a non-disclosure agreement (NDA) so they can review certain marketing material and/or commence due diligence...

£ [ insert number ] [ insert rate ]% convertible [ subordinated ] redeemable loan notes 20[ insert year ] [ insert name of issuer ] Dated [ insert day and month ] 20[ insert year ] Parties [ Insert name of issuing company ], incorporated in England and Wales under number [ insert company number ], whose registered office is at [ insert address ] (the Issuer) Background The Issuer has determined to create up to a maximum nominal amount of £[ insert number ] [ insert rate ]% convertible [ subordinated ] redeemable loan notes, to be constituted as set out in this document...

Applicant: [ NAME OF WITNESS ] First witness statement; Dated: [ insert ] — Exhibit: [ XX1 ] — Court ref. no: [ INSERT COURT REF. NUMBER ] [ IN THE HIGH COURT OF JUSTICE ] Business and Property Courts [ of England and Wales ] [ in [ INSERT LOCATION ] ] [ Company & Insolvency List (ChD) ] Or [ in the County Court at [ INSERT LOCATION ] ] [ Business and Property Courts List ] Or [ in the High Court of Justice ] [ Chancery Division ] In the matter of [ INVESTMENT BANK NAME ]; in the matter of the Investment Bank Special Administration Regulations 2011; and in the matter of the Insolvency Act 1986 WITNESS STATEMENT OF [ WITNESS NAME ] I, [ witness name ], being a director [ and chairperson ] of [ investment bank name ] of [ investment bank address ], state as follows: I serve as [...

Amendments to the International Tax Compliance Regulations 2015 (2015 regs), SI 2015/878, introduced by the International Tax Compliance (Amendment) Regulations 2025, SI 2025/740, have brought in a compulsory Automatic Exchange of Information (AEOI) registration obligation for certain trusts treated as ‘specified non-reporting financial institutions’. Under the 2015 regs, SI 2015/878, reg 24(1), a specified non-reporting financial institution is ‘a non-reporting financial institution which is a trust within the meaning of Section VIII(B)(1)(e) of the CRS or paragraph II(D) of Annex II to the FATCA agreement’. Set out below is a concise overview of the components of that definition. Financial institution (IEIM400610) The FATCA and CRS frameworks recognise four common categories of Financial Institution: custodial institution depository institution investment entity specified insurance company Where a private trust satisfies any Financial Institution definition, it will most commonly be treated as an Investment Entity...

Practice Note: Applying under the Representative of an Overseas Business category Please see Practice Note: Applying under the Representative of an Overseas Business category, which sets out the eligibility criteria and process (including application form and fee details) for submitting an initial application or seeking an extension under the UK immigration route for Representatives of an Overseas Business. The note explains the eligibility criteria for Sole Representatives of an Overseas Business...

The investment powers and duties of bare trustees It is sometimes unclear precisely where the investment powers and responsibilities of bare trustees begin and end. A bare trust arises when a trustee owns assets for a beneficiary who is of full age and has mental capacity. In strict terms, the trustee’s role is passive: to safeguard trust assets and pass them to the beneficiary as and when instructed. Yet, in reality, a trustee may agree to take on tasks beyond this remit, particularly if the trustee is a close relative of the beneficiary...