AI Summary of Article 2
This directive establishes key definitions pertinent to the operation of management companies and UCITS. It clarifies the roles of depositaries, management companies, and the relationship between home and host Member States. Important concepts include 'close links,' 'qualifying holdings,' and what constitutes 'transferable securities' and 'money market instruments.'
Further, it outlines operational aspects like mergers, including cross-border and domestic mergers, and delineates the responsibilities of management bodies within these entities. The aim is to ensure regulatory compliance and foster a robust framework for collective portfolio management across EU Member States.
Article 2
1. For the purposes of this Directive the following definitions apply:
(a) "depositary" means an institution entrusted with the duties set out in Articles 22 and 32 and subject to the other provisions laid down in Chapter IV and Section 3 of Chapter V;
(b) "management company" means a company, the regular business of which is the management of UCITS in the form of common funds or of investment companies (collective portfolio management of UCITS);
(c) "management company's home Member State" means the Member State in which the management company has its registered office;
(d) "management company's host Member State" means a Member State, other than the home Member State, within the territory of which a management company has a branch or provides services;
(e) "UCITS home Member State" means the Member State in which the UCITS is authorised pursuant to Article 5;