What is a non-harmonised (non-UCITS) investment fund?
Non-harmonised funds are those funds that do not fall under the European UCITS Directive. They are only regulated at national level. As a reminder, the UCITS Directive was primarily conceived as a vehicle for the cross-border distribution of investment funds to retail investors.
What is the UCITS Directive?
The UCITS Directive is the EU legislation for investment funds. It was primarily adopted in 1985 to facilitate the cross-border distribution (i.e. European passport) of investment funds to retail investors.
What do you call a retail investor?
For the purpose of the present study, a retail investor is defined as an individual with less than €100,000 in disposable assets and with fund subscription of less than €10,000.
Our analysis will also distinguish 3 other types of investors:
- Institutional investors
- HNWI (individuals with more than €1million of disposable assets)
- Mass affluent clients (between €100,000 and €1 million of disposable assets)
What is the scope of the study?
Non-UCITS investment funds such as real estate funds, private equity funds, hedge funds and structured funds. Equally important are wrappers through which non-UCITS funds may be marketed to (retail) investors: funds of funds, certificates, insurance contracts, discretionary/managed accounts, pension products or personal tax wrappers.
In addition to fund managers, distributors and wrapper players (i.e. those who market funds in wrappers), we will also cover Regulators, Stock Exchanges and investor & consumer associations.
Why would I voice my opinion?
The present study will feed the Commission future policy reflections regarding the regulatory framework of the non-UCITS products sold to retail investors.
Your opinion counts and this is a good opportunity for you to contribute to the ongoing development of the fund distribution landscape.
What about confidentiality?
PricewaterhouseCoopers is one of the world’s largest professional services organisations, and integrity and confidentiality are paramount to our business. At any time, we deal with a significant number of highly confidential matters and this survey is no different. All of your answers to this survey will be considered as private and confidential. All data you provide will be anonymous for the purposes of processing and analysis.
When will you submit the final results to the European Commission?
This is a 6-month study which will end at the end of June 2008.
Who is PricewaterhouseCoopers?
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 146,000 people in 150 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice. PricewaterhouseCoopers Luxembourg (www.pwc.com/lu) has about 1,600 professionals coming from more than 35 different countries.
Who is responsible for the project at PwC?
Project leader: Mark Evans, Partner, Fund Distribution Leader
Project Director: Fabrice Huberty, Director
E-mail: researchunit@lu.pwc.com
