This Practice Note explores key elements of Directive 2009/65/EC (UCITS Directive), as amended, including the UCITS regulatory framework, authorisation process, cross-border operation of UCITS, UCITS management companies, master-feeder structures, depositaries, remuneration and investment information. What is a UCITS fund? UCITS funds are authorised open-ended investment funds which can be marketed to retail investors throughout the EU, provided that they meet the requirements set out in the UCITS Directive. EU UCITS funds must be managed and domiciled in the EU. Definition and requirements of a UCITS fund Article 1 of the UCITS Directive defines a UCITS as an undertaking which has: • the sole object of collective investment in transferable securities or in certain other liquid financial assets of capital raised from the public and which operates on the principle of risk-spreading, and • units that are, at the request of holders, repurchased or redeemed, directly or indirectly, out of the undertaking’s assets UCITS must comply with detailed requirements to ensure they invest only in eligible assets, with an adequate spread of