What is UCITS compliance?

UCITS is a set of voluntary rules which many ETFs follow. ETFs which are UCITS compliant must follow minimum standards – that includes holding a diversified portfolio, publishing clear guidance on their charges and taking steps to safeguard investors’ money.

What means UCITS?

Undertakings for Collective Investment in Transferable Securities
UCITS (Undertakings for Collective Investment in Transferable Securities). Defined as organizations, whose sole purpose is to collectively invest – in securities and other financial assets – capital raised by the public and which operate under the principle of risk management.

What is a UCITS FCA?

(c) an open-ended investment company, or other collective investment undertaking, the units of which, under the fund rules or the instruments of incorporation of the investment company, may be sold only to the public in countries or territories outside the UK.

Where are UCITS registered?

UCITS as a brand has been recognised across the world, and many UCITS are registered in non-EU countries such as Switzerland, Hong Kong, Singapore, Taiwan, Bahrain, the UAE, Chile and Peru.

What is a regulated fund?

Regulated Fund means any investment company registered under the Investment Company Act of 1940, or any investment fund that is subject to similar regulation in another jurisdiction.

Are UCITS FCA regulated?

Undertakings for collective investment in transferable securities (UCITS) are regulated investment funds that can be sold to the general public throughout the EU, so it is important for them to have common standards of investor protection.

How do I become UCITS compliant?

For a fund to be considered UCITS-compliant, it must:

  1. Invest exclusively in listed securities.
  2. Be an open fund that allows investors to enter or leave the fund at will.
  3. Diversify underlying investments across different securities to reduce risk.

Are UCITS 40 Act funds?

UCITS and 40-Act Funds Specialized UCITS Fund and 40-Act Fund administration offerings include shadow accounting, independent portfolio and fund accounting, reconciliation against the primary administrator, and a range of other value-added support services.