UCITS is the abbreviation of EU's Undertakings for Collective Investment in Transferable Securities. In 1985, the same year the Schengen Agreement was signed, the European Parliament and the European Commission issued a series of legal guidelines, which established a set of cross-border supervision standards for open-end funds in EU member States. After the EU member states approve the guidelines by legislation, the funds that meet the requirements of UCITS can be sold to individual investors in other member states without applying for approval. At the same time, the guidelines also set up a preliminary framework for information sharing and cooperation among national regulatory agencies. At this point, the European securities investment funds scattered under the laws and supervision systems of member countries have been brought into the unified information disclosure and supervision system for the first time, so that the funds can more conveniently cross the border and promote sales in the whole European market.