Important Adjustments from the new EU-Guideline UCITS IV

The commonly used abbreviation “UCITS” stands for Undertakings of Collective Investment in Transferable Securities. This refers to the European Union-regulated investment funds, which may be distributed in each and every member country of the European Union after being admitted by the respective supervisory authority (up-to-date).

Key Investor Information

The revision of the simplified Prospectus (“Key Investor Information” (KII)) represents a significant innovation. This particular form will now include a standardized and therefore comparable overview for all categories of funds and in all member countries of the European Union. The Prospectus’ extend is strictly limited to two pages (in A4 format), leading to a quick and transparent summary of a fund for the potential investor.

Measures of Efficiency Enhancement

The new guideline contains the much discussed measures of efficiency enhancement. These are, most notably: Execution of mergers of funds across borders and the enabling of master-feeder-constructions (Accumulation of capital beyond national borders). As a result, existing types of funds of different countries can be combined together to save both duplicating work and administrative costs.

Unified Fund Certificate

As it is known to date, the fund certificate, which is issued by the responsible supervisory authority, certifies a fund’s conformity with the UCITS-guideline. In contrast to the old regulation, the fund certificate’s distribution to all member countries of the European Union will already be possible after the issuance. The quick admittance of funds simplifies direct competition with competing products for the future.

European Union Direction for Managing Companies

With the European Union Direction, any managing company can issue funds in every member country of the European Union, in which no subsidiary company or place of business exists.

CAIAC Fund Management AG
CAIAC Fund Management AG