The proposal of UCITS IV was approved by the European Parliament on January 13, 2009 and also by the Council of European Union, to be implemented in 2011. UCITS IV will bring further uniformity in collective investments throughout European Union. The UCITS IV directive introduced the management company passport and allows a UCITS to be managed by a management company authorised and supervised in a Member State other than its home Member State. UCITS IV has increased the governance (“organisational”) requirements of UCITS Management Companies and funds and has brought these requirements more in line with the Markets in Financial Instruments Directive 2004/39/ED (known as MiFID). UCITS or its management company needs to establish independent compliance and audit functions in addition to the independent risk management which was already required under UCITS III but which has been expanded to formalise the management of a variety of risks.