Definition of UCITS

Ucits stands for Undertakings for Collective Investments in Transferable Securities. Ucits provides a single European regulatory framework for an investment vehicle which means it is possible to market the vehicle across the EU without worrying which country it is domiciled in.

Designed to enhance the single market while maintaining high levels of investor protection, Ucits funds have also become successful in Asia and Latin America because the Ucits 'label' means investors can have some assurance that certain regulatory and investor protection requirements have been met.

The creation of the Ucits system also brought costs down for fund providers because it means they no longer had to create a new investment vehicle for each country in which they intended to market the product. 

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