The Directive 2009/65/EC outlines the regulatory framework for Undertakings for Collective Investment in Transferable Securities (UCITS) across the European Union. Its primary objectives include ensuring uniform investor protection, enhancing market competition, and facilitating the free movement of UCITS units within Member States. The Directive establishes essential rules regarding the authorisation, operation, and supervision of UCITS, requiring consistent reporting and compliance standards to safeguard investors.

Moreover, the Directive underscores the importance of effective risk management practices and mandates transparent communication of investment policies, risks, and costs associated with UCITS. Specific provisions are designed to streamline cross-border marketing of units, promote mergers of UCITS, and establish regulations governing management companies and depositaries. By harmonising these practices, the Directive aims to strengthen the integrity and stability of the financial system within the EU.