Opinion

The problem with mixing up the UCITS and MiFID directives

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What is the difference between UCITS and the MiFID Directives?

The primary difference is that the former directive looks at how the investment wrapper is built while MiFID, or Markets in Financial Instruments Directive, looks at who asset managers can sell to.

The directives look at very different issues and their differences are important. But as regulation becomes intrusive and the scope of financial regulation grows and deepens there is a danger that the distinction between two could become blurred.

A prime example of this is the proposals to divide UCITS-compliant funds into complex and non-complex – which comes under