A UCITS fund is a collective investment instrument that is aimed at small investors and is regulated by the corresponding European legislation (Directive 2014/91 / EU) which regulates its marketing and provides for limits on investments, instruments and exposure, in order to safeguard investors.
The great potential of this instrument lies mainly in the possibility of marketing to all categories of investors, including small savers, and in all European Union countries through the practice of “passporting” (i.e. the mere notification to the supervisory authority of the Country in which it is distributed, without the need for further authorization).
A UCITS fund can be incorporated in Malta as a SICAV, or in the other forms provided for by Maltese legislation:
- Limited Partnership
- Unit Trust
- Contractual Fund
A UCITS fund must guarantee some additional minimum requirements compared to other structures, such as:
• A minimum capital of € 300,000;
• At least one director resident in Malta;
• An independent Risk Management function which can adequately managing conflicts of interest and is separate from the operational management;
• Have an authorized UCITS management company or, in the case of a self-managed fund, an investment committee within the Board of Directors, made up of qualified members who have been approved by the regulator.