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. It controls unified 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 security 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 UCITS Directive indicated above is amended by precision provisions within implementation directives and implementation regulations.

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

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