Authorisation & Passporting: UCITS has an authorisation framework; provides an EU & Non-EU Passport.
Disclosures: Funds must make adequate disclosures to investors in the Prospectus / Key Investor Information Document.
Liquid Investments: Investments must be made only in liquid instruments in keeping with the commitment to allow investors to withdraw their investments at will.
Restrictions on Investments: There are restrictions on certain types of investments: non-voting shares; precious metals; being a guarantor – as some leading examples.
Derivatives may be used; subject to strict conditions and disclosure.
Master feeder structures are permitted; Funds are allowed to invest in other UCITS and Non-UCITS Funds
Valuation: Management has an oversight duty in relation to proper valuation of units and shares
Safekeeping of assets has to be ensured. Insolvency protection of Fund assets: with custodians and particularly sub-custodians
Conflicts of Interest: to be identified, recognized and managed properly
Remuneration Provisions: UCITS specifies remuneration provisions as applicable to the Fund Manager
Risk Management: Funds must have proper processes, as specified.