With just over 12 months to go until EU-based Undertakings for Collective Investment of Transferable Securities funds need to be compliant with the new Ucits III regulations, the fund industry is still unsure what use it can make of derivatives and structured products.
Ucits funds can be marketed to investors in EU countries other than those in which they are domiciled. Ucits III aims to give Ucits funds more flexibility by letting them use instruments like bank deposits, units of other funds and derivatives. It says that fund managers “must employ a process...
