Undertaking for Collective Investment in Transferable Securities
UCITS are harmonized European retail fund products that can operate throughout the EU based on a single authorisation from one member state, if it follows certain notification procedures. UCITS offer a high degree of investor protection and are recognised by regulators worldwide.
UCITS are required to at least appoint
Custodian / Depositary having substance in Malta and authorised by the MFSA;
Manager when UCITS is third party managed (when UCITS is self-managed, it must be managed by a Company approved by the MFSA);
The Scheme’s HO and registered office are to be both established in Malta.
UCITS main benefit is that once approved by an EU regulator, they can be marketed to both retail and institutional investors. Malta-based UCITS wishing to market their units outside Malta must inform the MFSA of their intention and await confirmation that the host regulators have been notified.