Brussels,

Investment Funds

The European Union has been actively involved in shaping the landscape of collective investment funds as part of its broader Capital Markets Union (CMU) initiative. This effort is aimed at enhancing the accumulation of personal savings, providing capital for businesses and projects, and ensuring better investment opportunities across the EU.

Key Aspects of EU Actions on Investment Funds

Role of Investment Funds: They are pivotal in pooling investors' capital and investing it in various financial instruments like stocks, bonds, and securities. Investment funds are essential for personal savings, major investments, and retirement planning. They also serve as a vital source of loans for companies and projects, contributing to growth and job creation.
Legislative Framework: The EU has implemented legislation in several areas to create a barrier-free market for collective investment funds. This includes:
- Undertakings for Collective Investment in Transferable Securities (UCITS): Accessible to retail investors.
- Alternative Investment Fund Managers: Targeting primarily professional investors.
- European Venture Capital Funds: Focusing on start-ups and early-stage companies.
- European Social Entrepreneurship Funds: Concentrating on social enterprises.
- European Long-Term Investment Funds: Investing in infrastructure, real estate, SMEs.
- Money Market Funds: Investing in short-term debt instruments.
Retail Investment Products: To protect investors, the EU adopted regulations for a Key Information Document (KID), a simplified document providing essential facts about various investment products, including investment funds, insurance-based investments, retail structured products, and private pensions.
Cross-Border Distribution of Funds: The EU has taken measures to ease the cross-border distribution of funds, enhance transparency, and provide unified access to information on national marketing requirements and regulatory fees. This initiative seeks to remove regulatory barriers and foster a more efficient single market.

Relevant legislation

Undertakings for the Collective Investment in Transferable Securities Directive (UCITS) - 2009/65/EC

Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS)

Delegated and implementing acts