Alternative investment funds (AIF) and undertakings for the collective investment in tradeable securities (UCITS)

UCITS

An undertaking for collective investment in transferable securities or UCITS is a collective investment vehicle that raises capital from the public and invests it, with due regard to specific restrictions on investments and diversification requirements. The characteristics of a UCITS have been set down in the UCITS Directive (2009/65/EC). The main features are, put briefly:

• the capital is invested in liquid financial assets
• under application of the principle of risk-spreading
• it is an open-ended undertaking
• and that it acquires funds to be invested from the public.

In principle, a collective investment vehicle that does not qualify as a UCITS is designated as an AIF.

AIFMs

An alternative investment fund (AIF) is:

• an institution for collective investment that
• raises capital from multiple investors,
• for the purpose of investing that capital in the interest of the investors,
• in accordance with a specified investment policy, and
• does not require authorisation under the UCITS Directive (2009/65/EC).

Managers of collective investment vehicles

A manager is defined as one that pursues the business of managing one or more AIFss or UCITS. An AIFs or UCITS may be managed either internally, in the case of an investment company, or externally, in the case of an investment fund.

Prohibition

In the Netherlands, it is prohibited to market a participation right in a collective investment vehicle unless the manager of the investment vehicle holds the appropriate authorisation. For managers of investment vehicles, the authorising body is the Netherlands Authority for the Financial Markets (AFM) For more information, the reader is referred to the AFM. DNB exercises prudential supervision over compliance with the Financial Supervision Act (Wft) and subsidiary legislation by investment vehicles located in the Netherlands.

If you have any questions, please apply to:

De Nederlandsche Bank NV
Afdeling Beleggingsondernemingen en beleggingsinstellingen
Postbus 98
1000 AB Amsterdam

DNB Information Desk: 0800 020 1068 (freephone in the Netherlands), on working days between 9:00 and 17:00 hours, or fax to (+31) (0)20 524 1883. You may also send an email to info@dnb.nl, stating your name, address and telephone number.