European Parliament Approves Reforms to UCITS Directive

March 16, 2009
The European Parliament has approved changes to the existing framework for Undertakings for Collective Investment in Transferable Securities (UCITS). The changes, called UCITS IV, will bring much-anticipated reform to the €5 trillion European retail investment funds market.

This update analyzes the changes, including the provision for the management company passport; an overhaul of the cross-border registration notification process; provisions to standardize mergers of UCITS; the provision for the use of master-feeder UCITS; and replacement of the Simplified Prospectus with a “Key Investor Information” document.