Undertakings for collective investment in transferable securities 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ARCHIVED: This Practice Note is archived and is no longer maintained.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III); followed by implementation in 2011 of Directive 2009/65/EC (the UCITS Directive, also called UCITS IV), which repealed and replaced the Original UCITS Directive; and Directive 2014/91/EU (UCITS V), which was transposed into national law on 18 March 2016...

ARCHIVED: This Practice Note is archived and is no longer maintained. This Timeline charts the proposal for the Securities Financing Transactions Regulation and the ensuing EU and UK developments concerning the Regulation. Within the EU, the European Commission undertook extensive work on shadow banking, culminating in its September 2013 Communication on Shadow Banking. Among its priorities was boosting transparency around securities financing transactions (SFTs). It also called for improvements to the regulatory framework for investment funds, including undertakings for collective investment in transferable securities (UCITS) and alternative investment funds (AIFs) (see Practice Notes: Undertakings for Collective Investment in Transferable Securities—essentials and UK regulation of alternative investment fund managers—essentials for further information). The EU Regulation on reporting and transparency of securities financing transactions, Regulation (EU) 2015/2365 (the EU SFTR), represents the Commission’s legislative response to the issues highlighted in the Communication. Most provisions of the EU SFTR took effect on 12 January 2016. After the Brexit transition period ended, the EU SFTR was retained in the UK as Retained Regulation...

ARCHIVED: This timeline has been archived and is not being updated. For updates from January 2024 and beyond, refer to EU AIFMD—timeline. For additional guidance on EU AIFMD, consult Practice Note: EU AIFMD—essentials. For more guidance on the UK Alternative Investment Fund Managers (AIFM) regime, see Practice Note: UK regulation of alternative investment fund managers—essentials. Date Source Document Description 15 December 2023 European Commission Commission Delegated Regulation (EU) /... supplementing Directive 2009/65/EC of the European Parliament and of the Council concerning regulatory technical standards setting out the information to be reported regarding the cross-border operations of management firms and undertakings for collective investment in transferable securities (UCITS) Commission Implementing Regulation (EU) /... ...

Asset Management & Investment Funds: Irish Practice Developments—January 2026 Some annual compliance deadlines 31 January 2026—Undertakings for Collective Investment in Transferable Securities (UCITS) management company and alternative investment fund manager (AIFM) ownership confirmation—UCITS management companies (ManCos) and AIFMs are required to submit their annual ownership confirmation by 31 January 2026, as outlined for UCITS ManCos and for AIFMs. 20 February 2026—UCITS Key Investor Information Document (KIID)/PRIIPs Key Information Document (KID)—All UCITS offered to ‘retail investors’ in the EEA must provide those investors with a PRIIPs KID before they invest. A UCITS not made available to retail investors in the EEA does not need a PRIIPs KID and may continue to produce a UCITS KID. A UCITS preparing a UCITS KIID must update the KIID annually for each sub‑fund/standalone fund within 35 business days of the end of each calendar year, and the updated UCITS KIID must be filed with the CBI. Unlike the UCITS...

The policy statement set out the definitive rules and guidance to deliver the OFR, intended to streamline the ability to market certain investment funds formed outside the UK in the UK, including to retail clients. While the FCA handbook rules and guidance largely reflect the proposals in consultation paper 23/26, several notable changes have been introduced: removing the proposed 30-day interval between notifying the FCA of changes to OFR funds and the point at which those changes could take effect in the UK; and clarifying when the FCA should be informed about alterations to a fund's fundamental characteristics. This article explores the amendments, how the OFR will be rolled out, and what fund operators and their legal advisers should be doing now to meet the regime. Background Given Brexit ended so-called fund passporting rights, the FCA established a transitional arrangement allowing previously passported European Economic Area undertakings for collective investment in transferable securities, or UCITS, to continue to be marketed...

The long-anticipated AIFMD II, amending Directive 2011/61/EU (AIFMD) and Directive 2009/65/EC on Undertakings for Collective Investment in Transferable Securities in relation to delegation arrangements, liquidity risk management, supervisory reporting, the provision of depositary and custody services, and loan origination by alternative investment funds, entered into force on 15 April 2024. Delegation The recitals to AIFMD II acknowledge the crucial contribution of third-party delegation to streamlined portfolio management and to securing know-how in a specific region or asset class. AIFMD already bars AIFMs from outsourcing to such an extent that they amount to a ‘letter-box entity’. Delegation remained a central theme of the AIFMD review, and the recitals also stress the need for supervisors to hold up-to-date details on the principal features of delegation set-ups, and to implement targeted adjustments to enhance AIFMD’s operation, including the standards for AIFMs that delegate to third parties. Consequently, AIFMD II does not add further substantive duties for AIFMs regarding delegation; however, as outlined below, it introduces strengthened reporting obligations for AIFMs on...

This Practice Note This Practice Note reviews the investor disclosures required for UCITS funds (that is, open-ended collective investment schemes constituting undertakings for collective investment in transferable securities). It also examines key provisions of the UCITS Directive 2009/65/EC. Coverage includes obligations concerning the prospectus, periodic reports, pricing details and the key investor information. For more information on the UCITS regime, see Practice Note: Undertakings for Collective Investment in Transferable Securities (UCITS)—essentials. For details on non‑UCITS funds within the Alternative Investment Funds Directive (Directive 2011/61/EU) (AIFMD) regime, refer to Practice Note: EU AIFMD—essentials. For AIFMD investor disclosures and the AIF prospectus, see Practice Note: EU AIFMD—transparency rules and the prospectus...

This Practice Note outlines the principal concepts relating to an open-ended investment company (OEIC), also referred to as an investment company with variable capital (ICVC). It addresses: the relevant provisions of the Open-Ended Investment Companies Regulations 2001, SI 2001/1228 (OEIC Regulations 2001) and the Financial Services and Markets Act 2000 (FSMA 2000); the criteria for obtaining Financial Conduct Authority (FCA) authorisation; and the process for winding up. FCA-authorised CIS In the UK, an FCA-authorised collective investment scheme (CIS) may take one of these legal forms: an OEIC an authorised unit trust (AUT). For further information on an AUT, see Practice Note: Authorised unit trusts (AUTs), or an authorised contractual scheme (ACS). For further information on an ACS, see Practice Note: Taxation of authorised contractual schemes (ACSs) FCA-authorised funds (OEICs, AUTs or ACSs) can adopt one of the following regulatory forms: a UK undertaking for collective investment in transferable securities (UCITS), a non-UCITS retail scheme (NURS), a qualified investor scheme (QIS)...

This Practice Note reviews the function of depositaries of UCITS funds (ie open-ended collective investment schemes (CIS) that are undertakings for collective investment in transferable securities) and the framework in Directive 2009/65/EC (the UCITS Directive), as updated by Directive 2014/91/EU (UCITS V), along with the supplementing delegated regulations and UK implementing measures (such as the Financial Conduct Authority (FCA) Handbook), plus the retention measures introduced following the end of the Brexit transition period. It considers a depositary’s obligations and requirements, who may act as depositary, liability, and constraints on delegation... EU legislation on UCITS depositaries Undertakings for collective investment in transferable securities (UCITS) are open-ended collective investment schemes which comply with Directive 2009/65/EC on the co-ordination of laws, regulations and administrative provisions relating to UCITS (the UCITS Directive, also known as UCITS IV), as amended by Directive 2014/91/EU (UCITS V). The requirements applicable to depositaries are contained in Articles 22–26b of the UCITS Directive...