UCITS
Undertakings for collective investment in transferable securities (UCITS) are pooled investment schemes, otherwise known as investment funds or mutual funds, which meet the criteria laid down by EU Directives in this area. UCITS benefit from a “European passport” which permits the underlying shares or units to be offered for sale throughout the European Union following authorisation of the fund in one Member State.
Luxembourg is by far the most popular domicile for UCITS. The Grand Duchy offers promoters a unique concentration of product development experts, lawyers, accountants and specialist service providers who can assist them in the design, launch and distribution of investment funds.
Over the last 20 years UCITS have built up a first class reputation for the high level of protection afforded to investors. They are recognised by financial market supervisory authorities around the world and accepted for distribution in their respective markets.
Promoters wishing to set up a UCITS are referred to the Law of 20 December 2002 on undertakings for collective investment.
Further information can be found on the website of the Association of the Luxembourg Fund Industry (ALFI).
Practical guide:
How to set up a UCITS fund
How to set up a UCITS management company