After section 236 insert -

"236A. Meaning of "UCITS"

(1) For the purposes of this Act, and subject to subsection (4), "UCITS" means an undertaking established in the United Kingdom or an EEA State -

(a) with the sole object of collective investment, operating on the principle of risk- spreading, in transferable securities or other liquid financial assets mentioned in subsection (3), of capital raised from the public; and

(b) with units which are, at the request of holders, repurchased or redeemed, directly or indirectly, out of the undertaking’s assets.

(2) A UCITS may consist of several sub-funds (see section 237(4)).

(3) The transferable securities or other liquid financial assets referred to in subsection (1)(a) are -

(a) in the case of an undertaking established in the United Kingdom, those permitted by section 2 of chapter 5 of the Collective Investment Schemes sourcebook [Sourcebooks made by the Financial Conduct Authority and copies of the rules referred to can be obtained from the Financial Conduct Authority, 12 Endeavour Square, London E20 1JN, where they are also available for inspection.]; or

(b) in the case of an undertaking established in an EEA State, those referred to in Article 50(1) of the UCITS directive [OJ L 174, 1.7.2011, p.1.].