What is UCITS V directive?

The UCITS V Directive (“UCITS V”) amends the regulatory framework for Undertakings for Collective Investment in Transferable Securities (“UCITS”) to address issues relating to the depositary function, manager remuneration and administrative sanctions.

What is a UCIT fund?

An Undertaking for Collective Investment in Transferable Securities (UCITS) is an investment fund that invests in liquid assets and can be distributed publicly to retail investors across the EU.

What is the difference between UCITS and non UCITS?

The key difference is that liquidity is a key requirement of a UCITS fund, with full redemption facilities to be provided at least once every two weeks, whereas non-UCITS such as the QIF permit a full range of options from liquid to semi-liquid, to illiquid with no redemptions permitted.

What are UCITS and AIFS?

A CCF can be established as a UCITS fund (Undertakings for Collective Investment in Transferable Securities) or an AIF (Alternative Investment Fund). Tax transparency is the main feature, which differentiates the CCF from other types of Irish funds. The CCF is authorised and regulated by the Central Bank.

What is Ucits V?

UCITS V aims to increase the level of protection already offered to investors in UCITS and to improve investor confidence in UCITS. It aims to do so by enhancing the rules on the responsibilities of depositaries and by introducing remuneration policy requirements for UCITS fund managers.

What is the difference between a mutual fund and a UCITS fund?

Structurally, UCITS are built like mutual funds, with many of the same features, regulatory requirements, and marketing models. Individual and institutional investors, who form a collective group of unit holders, put their money into a UCIT, which, in turn, owns investment securities (mostly stocks and bonds) and cash.

Is a unit trust a UCIT?

A unit trust may be authorised as a UCITS (in which case they must be open-ended). UCITS are subject to the UCITS regime (which includes the Central Bank of Ireland’s UCITS Regulations) and the provisions of the Unit Trusts Act 1990.

Is a UCIT an ETF?

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.

Are all OEICs UCITS?

The UK OEICs still follow all the same rules and regulations as UCITS funds, but they can no longer be marketed using a UCITS passport in the EU.

What is the difference between an AIF and a UCITS?

A UCITS, however, will invest more specifically into liquid financial assets such as bonds, shares and money market instruments. In contrast, an AIF will generally be defined as those funds that do not satisfy the criteria for regulation as UCITS.

What is the difference between UCITS and ETF?