The aim of this article is to analyse legal developments in the collective investment
institutions` market in Europe and their potential impact on the shape of the European financial
market. In the case of UCITS funds (primarily open-end funds aimed at individual investors) the
most important will be implementation of the provisions of Directive 2009/65/EC of the European
Parliament and of the Council (UCITS IV). It will introduce European passport for management
companies, establish new regulations for cross-border mergers and acquisitions and shorten and
simplify the process of notification of UCITS funds. For other funds, non-harmonised with UCITS
IV Directive (so-called alternative investment funds: hedge funds, private equity funds, real estate
funds, commodity funds, infrastructure funds and other types of institutional funds), the European
Commission prepared a draft Directive on Alternative Investment Fund Managers. The puropse of
this Directive is to extend regulation and supervision of all entities and each type of activity that
involves significant risks
