UCITS structure is bringing onshore in a regulated framework hedge fund strategies which were previously available offshore and only to "accredited investors".
The UCITS directive is providing guidelines for mitigating some of the risks linked to the fund's operations and investment strategy.
The effectiveness of those protections is being tested in the case of the UCITS funds invested with Bernard Madoff.
It is broadly recognized that the UCITS structure is providing some extra level of protection to investors but at which cost!!!
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As of now, UCITS structures are not available in the States, but is there any effort to bring them over?
ReplyDeleteKevin
The UCITS structure is based on an European directive, I am not aware of the US regulator willingness to adopt such regulation.
ReplyDeleteHowever, the UCIT format is recognised worldwide. In fact, asia investors are the larger subscribers to such investment schemes.
Some US managers have already opened UCIT version of their hedge funds.