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-From Article 1(2) of [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}})
+{{anat|UCITS}}
+<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>
-{{box|For the purposes of this Directive, and subject to Article 2, {{tag|UCITS}} shall be undertakings:
+{{tag|UCITS}} - or "'''[[undertakings for the collective investment in transferable securities]]'''" - are regulated European investment funds, generally aimed at '''retail''' investors.
-*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.}}
-===UCITS V===
+{{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.
-On 23 July 2014 the {{tag|European Union}} adopted {{eudirective|91|2014|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.
+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.
+==={{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...
+==={{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.
 This directive introduces new rules on UCITS depositaries, such as the entities eligible to assume this role, their tasks, delegation arrangements and the depositaries’ liability as well as general remuneration principles that apply to fund managers.
+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===
-*[[UCITS fair value]]
+*[[UCITS investments]]
-*[[UCITS liquid financial assets]]
+*[[UCITS eligibility criteria for derivative counterparties]]
-*[[UCITS daily valuation]]
 *{{tag|UCITS}}