Chapter 15: Cross Border Set Up Of Crowdlending Investment Funds

Nature, design and set up of undertakings for collective investments (”UCIs“ or “funds”) are predominantly determined by the content and conditions of their respective fund regimes or laws, legal forms and fund types [1]. Investment guidelines and -restrictions which determine the fund’s strategy (investment policy) can generally be freely defined by the fund’s initiator (and therefore form the fund’s character and distinguishing features). Dedicated investment restrictions may, however, arise from specific national and cross-border directives, regulations and laws or may be given by allocation bandwidths or diversification requirements respectively. “Investment law regulates the activities of asset managers when managing the funds of [...] pooled (collective) investments of multiple investors.” [2]. The dominant fund types within the European Union are “Untertakings for Collective Investments in Transferable Securities” (UCITS) [3] as well as “Alternative Investment Funds” (AIFs) [4] [5].