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{{Box|
{{anat|UCITS}}
===Not to be confused with AIFs===
<small>''Not to be confused with {{tag|AIF}}s:Compare and contrast '''[[alternative investment fund]]s''' regulated under {{tag|AIFMD}}, which are professionals-only funds ([[hedge fund]]s etc). The regulations are in some ways converging, but there are still a lot of differences in the types of risks that an [[AIF]] can take compared to a {{tag|UCITS}}. See also: [[Depositary comparison under AIFMD and UCITS]]'' </small>
''Compare and contrast '''[[alternative investment fund]]s''' which are regulated under {{tag|AIFMD}}, which are professionals-only funds (hedge funds etc). The regulations are in some ways converging, but there are still a lot of qualitative differences in the types of risks that an [[AIF]] can take compared to a {{tag|UCITS}}.''
 
''See: [[Depositary comparison under AIFMD and UCITS]]''
}}


{{tag|UCITS}} - or "'''[[undertakings for the collective investment in transferable securities]]'''" - are regulated European investment funds, generally aimed at '''retail''' investors.   
{{tag|UCITS}} - or "'''[[undertakings for the collective investment in transferable securities]]'''" - are regulated European investment funds, generally aimed at '''retail''' investors.   
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{{tag|UCITS}} funds must meet strict criteria as to how they are set up, managed and marketed, and as to the portfolio of asset a {{tag|UCITS}} fund is allowed to invest in: There are concentration limits and other criteria which ensure diversity of risk; assets must be liquid, there should be very limited use of [[leverage]] and the fund must ensure it has diverse exposure to trading counterparties, banks and so on.
{{tag|UCITS}} funds must meet strict criteria as to how they are set up, managed and marketed, and as to the portfolio of asset a {{tag|UCITS}} fund is allowed to invest in: There are concentration limits and other criteria which ensure diversity of risk; assets must be liquid, there should be very limited use of [[leverage]] and the fund must ensure it has diverse exposure to trading counterparties, banks and so on.


The most recent UCITS legislation is {{tag|UCITS V}}, ({{eudirective|2014|91|EU}}). But also relevant is {{tag|UCITS IV}}, {{eudirective|2009|65|EC}}.
The most recent UCITS update is {{tag|UCITS V}}, ({{eudirective|2014|91|EU}}), which has specific implications for Custodians and depositaries, and was driven in part by the fallout from [[Madoff]]. But the bulk of {{tag|UCITS IV}}, set out at {{eudirective|2009|65|EC}}, is still in force.
 
From Article 1(2) of {{eudirective|85|611|EEC}} [http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:1985L0611:20080320:EN:PDF Council Directive (85/611/EEC)] of 20 December 1985 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities ({{tag|UCITS}})
 
{{box|For the purposes of this Directive, and subject to Article 2, {{tag|UCITS}} shall be undertakings:
*the sole object of which is the collective investment in transferable securities and/or in other [[UCITS liquid financial assets|liquid financial assets]] referred to in [[UCITS liquid financial assets|Article 19(1)]] of capital raised from the public and which operates on the principle of risk-spreading and
*the units of which are, at the request of holders, re-purchased or redeemed, directly or indirectly, out of those undertakings' assets. Action taken by a {{tag|UCITS}} to ensure that the [[stock exchange]] value of its units does not significantly vary from their net asset value shall be regarded as equivalent to such re-purchase or redemption.}}


==={{tag|UCITS IV}}===
==={{tag|UCITS IV}}===
UCITS IV is the common name for {{eudirective|2009|65|EC}} passed by the European Parliament and of the Council of 13 July 2009. It was subsequently amended by...
UCITS IV is the common name for {{eudirective|2009|65|EC}} passed by the European Parliament and of the Council of 13 July 2009. It was subsequently amended by...
==={{tag|UCITS V}}===
==={{tag|UCITS V}}===
On 23 July 2014 the [[European Union]] adopted {{eudirective|2014|91|EU}} on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities ({{tag|UCITS}}) as regards depositary functions, remuneration policies and sanctions.
On 23 July 2014 the [[European Union]] adopted {{eudirective|2014|91|EU}} on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities ({{tag|UCITS}}) as regards depositary functions, remuneration policies and sanctions.
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The {{tag|depositary}} as a specific function under {{tag|UCITS}} legislation (rather as it does under {{tag|AIFMD}}). The depositary may delegate its functions to a third party {{tag|custodian}} - as to which see {{tag|sub-custodian}}.
The {{tag|depositary}} as a specific function under {{tag|UCITS}} legislation (rather as it does under {{tag|AIFMD}}). The depositary may delegate its functions to a third party {{tag|custodian}} - as to which see {{tag|sub-custodian}}.


===[[Rehypothecation]] gets me down===
{{Ucits and reuse}}
===See Also===
===See Also===
*[[UCITS fair value]]
*[[UCITS investments]]
*[[UCITS liquid financial assets]]
*[[UCITS daily valuation]]
*[[UCITS eligibility criteria for derivative counterparties]]
*[[UCITS eligibility criteria for derivative counterparties]]
*{{tag|UCITS}}
*{{tag|UCITS}}
{{anat|UCITS}}
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