APPLICATION OF EUROPEAN DIRECTIVES AND REGULATIONS FOR EUROPEAN INVESTORS

RICHARD MARTINUS

https://doi.org/10.53465/ER.2644-7185.2025.4.256-276

Abstract: European directives are a general regulation on how investment funds should be offered to retail investors. These directives apply to the composition of the portfolio as well as to the advisory process and set the standards that European funds should follow. To standardise the fund, various directives are employed, with the most common designation for ETF funds being UCITS. These funds have a prescribed set of documents that must be provided to the investor before investing, such as a Key Investor Information Document. This document includes the risk score of the given fund, which has been calculated differently over the years in accordance with the MiFID directive. In this work, we compare the approach to individual funds and highlight the change in approach from 2014, when the calculation of risk was transitioned to a new metric, while noting the higher degree of restrictiveness of the metric used prior to 2014.

Keywords: UCITS, MiFID, PRIIP, KID, SRI, SRRI

JEL Classification: C18, C23, G28, D18

Fulltext: PDF

Online publication date: 19 December 2025

To cite this article (APA style):

Martinus, R. (2025). Application of European directives and regulations for European investors. Economic Review, 54(4), 256 ─ 276. https://doi.org/10.53465/ER.2644-7185.2025.4.256-276

Publisher: Bratislava University of Economics and Business | EUBA

ISSN 2644-7185 (online)

License:

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.