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Directives & Regulations

Here you will find detailed information on European fund regulation.

UCITS is short for 'Undertakings for Collective Investment in Transferable Securities' or in German OGAW 'Organismus für gemeinsame Anlagen in Wertpapieren'. This European Directive stems from the year 1985, and is in force in its current, consolidated version as 2009/65/EG UCITS V since March 18th, 2016. The consolidated version is based on the amending Directive 2014/91/EG of July 23rd, 2016. The Directive lays down harmonised legislation within the EU concerning open investment funds, which invest in transferable securities such as shares and bonds. Focused on as broad investor protection as possible, this Directive regulates the organisation, the management and supervision of investment funds according to UCITS. Great importance is given on the following issues: what securities may be invested in, and the guarantee of sufficient distribution of the same, sellability of the investment fund at any time, correct valuation of the securities in the investment fund, adequate risk management, secure storage of the asset components and sufficient information for investors.
The UCITS V adaptations comprise amongst others the authorisation, the activity and the liability of depositaries (custodian banks) responsible for the safekeeping of the fund assets. Furthermore, requirements for the compensation systems of management companies are brought in line with those of the AIFM framework. The Directive also introduces new rules to be implemented by EU Member States on sanctions regarding violations of provisions of the UCITS Directive.
Investment funds that fulfil the requirements concerning the UCITS may be offered, based on the high regulatory standards they adhere to, across the entire EU without limitations. Membership in the EEC caused Liechtenstein to take over this directive as well and to implement it to form a national act of law. This means for investment funds the assurance of simple and non-discriminatory access to the European market, and for investors, the same legal security as in case of all other investment funds of the EU.

The above-mentioned UCITS Directive is complemented at "level 2" by delegated directives and delegated regulations.

UCITS V Directive (in Liechtenstein implemented in the UCITS Act)
Directive 2009/65/EC

UCITS IV Implementation directives
Directive 2010/42/EU
Directive 2010/43/EU

UCITS IV Implementation regulations
Regulation (EU) No. 583/2010
Regulation (EU) No. 584/2010

UCITS V Delegated regulations
Delegated regulation (EU) No. 2016/438 – Depositaries

European Directive 2011/61/EU on Alternative Investment Fund Managers of June 8th, 2011, also called the AIFM Directive (AIFMD; Alternative Investment Fund Managers Directive), governs the work of managers of alternative investment funds. It concerns all managers of open and closed funds, as long as they are not already subject to the UCITS Directive.
Contrary to the UCITS Directive, which regulates funds, the AIFM Directive governs, apart from a few exceptions, managers (AIFM), and not funds (AIF). The goal is the increase of transparency for investors and the supervision concerning the activities of managers and the funds they administrate.

A material advantage for AIFM is the EU Passport. It entitles an AIFM to the sale of AIF to professional investors within the EU. With respect to private customers, the AIFM and the AIF must still fulfil the national framework conditions of the individual EU member states.

AIFM Directive (in Liechtenstein implemented in the AIFMG Act)
Directive 2011/61/EU

AIFM Implementing regulations
Implementing regulation (EU) No. 447/2013
Implementing regulation (EU) No. 448/2013

Delegated regulations
Delegated regulation (EU) No. 231/2013
Delegated regulation (EU) No. 694/2014

European venture capital funds/EuVECAs 
Regulation (EU) No. 345/2013
Implementing regulation (EU) No. 593/2014

European social entrepreneurship funds/EuSEFs 
Regulation (EU) No. 346/2013

European long-term investment funds/ELTIFs 
Regulation (EU) No. 2015/760

Key information documents for packaged retail and insurance-based investment products/PRIIPs
Regulation (EU) No. 1286/2014
Delegated Regulation (EU) 2017/653

Regulation (EU) No 648/2012
Overview Level 2

Updated rules for markets in financial instruments: MiFID 2
Directive 2014/65/EU
Overview Level 2