Introduction to Undertaking for Collective Investment in Transferable Securities (UCITS)

Undertaking for Collective Investment in Transferable Securities (UCITS) are investment funds based in the European Union (EU), which can sometimes be used as an alternative for clients who are unable to purchase U.S. mutual funds or exchange-traded funds (ETFs).

Requirements to purchase UCITS

Certain UCITS are available for purchase by calling Schwab Global Investing Services Tooltip : 800-992-4685. To purchase UCITS, clients must meet all criteria below:

  • Cannot be any of the following: U.S. citizen, have a U.S. home/legal address, or be an entity formed/established in the U.S.
    • If any account holder or authority role (i.e., authorized agent or trustee) has a U.S. SSN or TIN, is a U.S. citizen, or has a U.S. home/legal address, the account is ineligible.
    • Power of attorney, limited Tooltip , or full trading authority with U.S. home/legal or citizenship on non-U.S. accounts can make UCITS sell orders only, no buy orders
  • Account must be an individual or entity (organization or trust) account only. No IRA/retirement, custodial, or estate accounts.
  • You must confirm verbally to Global Investing Services that your client resides outside of the U.S. at the time of purchase. The client’s Home/Legal address on record must be the same as the country where the UCITS security is registered.
    • Note: If the client moves to a different (non-U.S.) country, the client may keep the UCITS security, but may not purchase it again if they move to a country where the UCITS security isn’t registered.
  • UCITS do not have to be listed on Schwab’s mutual fund portal to be requested. If the requested UCITS have not been ordered previously, they will not appear on Schwab’s mutual fund portal. Global Investing Services will conduct a business review that typically takes two business days (subject to change) and will contact the advisor purchasing on behalf of the client once eligibility has been determined.
  • If eligible for purchase, the advisor must confirm verbally to Global Investing Services that their client knows how to access the Key Investor Information Document (KID), since it is the responsibility of the client’s investment advisor to provide the KID to their client. See below for additional information.
  • UCITS are currently not available for purchase through Schwab Advisor Center®.

Requirements for KID

The KID is a document mandated by the EU for all UCITS funds.

The advisor purchasing on behalf of the client must provide verbal confirmation to Global Investing Services at the time of purchase that their client has read the KID. No additional written confirmation or signature is needed.

 It is the responsibility of the client’s investment advisor to provide the KID to their client.

There are two primary ways to obtain the KID:

  • Schwab Alliance or Schwab.com website (login ID required):
    • Go to Research, under Research Tools, select non-U.S. ETF.
    • From the Schwab’s non-U.S. ETF Center, click the green Yes button to confirm.
    • Follow steps two and three, select country of residence on step three and click OK.
    • An additional pop-up window will ask you to confirm your country/region of residence. If correct, click OK.
    • Select any security from the list of various non-U.S. ETFs and UCITS.
    • At the bottom of this security information page, select KID from the downloads.

Contact the fund company directly to obtain the KID.