# UCITS

*Regulation & Compliance — Finicade finance glossary*

UCITS is the EU framework for retail funds, imposing diversification, liquidity and leverage limits in exchange for the right to sell across the bloc.

UCITS is the EU framework for retail investment funds, imposing diversification, liquidity and leverage limits in exchange for the right to be sold across every member state. Its rules are strict enough that UCITS funds are accepted by investors well beyond Europe, in Asia and Latin America especially, making it the most successful fund passport in the world.

**Also known as:** UCITS fund, European fund passport

**Related terms:** [Mutual Fund](https://finicade.com/glossary/mutual-fund), [ETF (Exchange-Traded Fund)](https://finicade.com/glossary/etf), [MiFID II](https://finicade.com/glossary/mifid-ii), [Diversification](https://finicade.com/glossary/diversification), [Prospectus](https://finicade.com/glossary/prospectus)

Source: https://finicade.com/glossary/ucits