Product Directive
The primary aim of the Product Directive 2001/108/EC is to remove barriers to the cross-border marketing of units of collective investment funds by allowing funds to invest in a wider range of financial instruments (including derivatives), which subject the same regulation in every Member state. All UCITS funds comply the same investment limits.
A collective investment fund may apply for UCITS status in order to allow EU-wide marketing. The concept is to create a single funds market across the EU. The aim is that with a larger market the economies of scale will reduce costs for investment managers which can be passed on to consumers.
Throughout Europe approximately €6.8 trillion are invested in collective investments. Of these funds about 76% are UCITS.
Read more about this topic: Undertakings For Collective Investment In Transferable Securities Directives
Famous quotes containing the word product:
“The product of mental labor—science—always stands far below its value, because the labor-time necessary to reproduce it has no relation at all to the labor-time required for its original production.”
—Karl Marx (1818–1883)