UK regime for UCITS | Practical Law (2024)

FAQs

Are UK funds still UCITS? ›

The UK is no longer part of the EU's UCITS framework. However, the FCA has retained the UCITS rulebook for UK domiciled funds, thereby creating a category of fund known as UK UCITS, even though, from the EU's perspective, they are third country Alternative Investment Funds (AIFs).

The Undertakings for Collective Investment in Transferable Securities (UCITS) Directive contains the operating framework for UCITS and their managers. In general terms, a UCITS is a highly regulated fund that can be marketed and sold to both retail and professional investors in the EEA.

The UK AIFMD establishes a framework for monitoring and supervising risks posed by UK AIFMs and the AIFs they manage, and for strengthening the UK market in alternative funds. It also includes requirements for firms acting as a depositary for an AIF.

SICAVs are often contrasted with SICAFs. SICAFs are similar to closed-end funds in the U.S. SICAFs are an acronym for Société d'Investissem*nt à Capital Fixe. They are traded on public market exchanges and operate with a fixed number of shares. UCITS structured SICAVs are actively cross-border marketed in Europe.

The UCITS Directive aims at strengthening asset protection, transparency and information to investors. The European Commission has adopted two regulations dated 12 July 2018, directly applicable from 1st April 2020.

What Is the Difference Between UCITS and Non-UCITS? Non-UTICS funds do not comply with UCITS guidelines. They are likely not open-ended and liquid, one of the more significant requirements for a fund to be UCITS compliant.

No minimum investment level is applied under UCITS regulation (although funds may fix levels themselves); no investor eligibility criteria are applied.

UCITS is an acronym for Undertakings for the Collective Investment in Transferable Securities. It is a regulatory framework for the creation and distribution of mutual funds in the European Union. UCITS funds simply refer to mutual funds that adhere to the UCITS framework.

Since the Bank's founding, projects in the UK have received €119 billion in loans, 8.1% of the total lent. Now that the UK has left the EU, it is no longer part of the Bank's governance and is not eligible for loans on the same terms as when it was an EU member state.

The UK Shared Prosperity Fund (UKSPF) | Local Government Association.

Does the UK have index funds? ›

Examples of index funds

In the UK, the iShares Core FTSE 100 UCITS ETF tracks the whole of the FTSE 100 and is recognised as one of the more successful index funds.