Article 19

1. The investments of a unit trust or of an investment company must consist solely of: (a)transferable securities admitted to official listing on a stock exchange in a Member State and/or; (b)transferable securities dealt in on another regulated market in a Member State which operates regularly and is recognized and open to the public and/or; (c)transferable securities admitted to official listing on a stock exchange in a non-member State or dealt in on another regulated market in a non-member State which operates regularly and is recognized and open to the public provided that the choice of stock exchange or market has been approved by the competent authorities or is provided for in law or the fund rules or the investment company's instruments of incorporation and/or; (d)recently issued transferable securities, provided that: -the terms of issue include an undertaking that application will be made for admission to official listing on a stock exchange or to another regulated market which operates regularly and is recognized and open to the public, provided that the choice of stock exchange or market has been approved by the competent authorities or is provided for in law or the fund rules or the investment company's instruments of incorporation; -such admission is secured within a year of issue. 2. However: (a)a UCITS may invest no more than 10 % of its assets in transferable securities other than those referred to in paragraph 1; (b)a Member State may provide that a UCITS may invest no more than 10 % of its assets in debt instruments which, for purposes of this Directive, shall be treated, because of their characteristics, as equivalent to transferable securities and which are, inter alia, transferable, liquid and have a value which can be accurately determined at any time or at least with the frequency stipulated in Article 34; (c)an investment company may acquire movable and immovable property which is essential for the direct pursuit of its business; (d)a UCITS may not acquire either precious metals or certificates representing them. 3. The total of the investments referred to in paragraph 2 (a) and (b) may not under any circumstances amount to more than 10 % of the assets of a UCITS. 4. Unit trusts and investment companies may hold ancillary liquid assets.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-27 · Text as adopted (Official Journal); later amendments are not incorporated in this text.