Glossary
Investment restrictions
Investment restrictions are the limits that a fund’s regulation, prospectus or constitution impose on what it may hold and in what proportions.
Investment restrictions is the usual name for a fund’s limits. They come from regulation, from the prospectus or offering documents, and from the fund’s own constitution. A UK UCITS scheme applies the COLL 5.2 spread rules; an EU UCITS applies Articles 50 to 57 of Directive 2009/65/EC.
Typical restrictions cap exposure to one issuer, one counterparty or one other fund, set eligible-asset lists and limit borrowing. Under Article 52 of the UCITS Directive, a fund may hold up to 5% of its assets in securities of one issuer. Member States may raise that to 10%, provided holdings above 5% total no more than 40% (UCITS 5/10/40).
Single limits translate directly into rules; tests that combine several holdings need care. Acclimetry evaluates a per-issuer cap as one rule, but not the 40% aggregate test. See the restrictions library.
See also
Sources
- Directive 2009/65/EC (UCITS), Article 52, text as it stood at UK exit (legislation.gov.uk; source of record EUR-Lex) · OGL v3.0 · Read on12 October 2026
- FCA Handbook, COLL 5.2 (investment powers and limits for UK UCITS schemes), read 12 October 2026; pending FCA API snapshot · © FCA, OGL v3.0 · Read on12 October 2026