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:
“Labor is work that leaves no trace behind it when it is finished, or if it does, as in the case of the tilled field, this product of human activity requires still more labor, incessant, tireless labor, to maintain its identity as a “work” of man.”
—Mary McCarthy (1912–1989)