1.The following shall not be UCITS subject to this Directive: -UCITS of the closed-ended type; -UCITS which raise capital without promoting the sale of their units to the public within the Community or any part of it; -UCITS the units of which, under the fund rules or the investment company's instruments of incorporation, may be sold only to the public in non-member countries; -categories of UCITS prescribed by the regulations of the Member States in which such UCITS are situated, for which the rules laid down in Section V and Article 36 are inappropriate in view of their investment and borrowing policies.
2.Five years after the implementation of this Directive the Commission shall submit to the Council a report on the implementation of paragraph 1 and, in particular, of its fourth indent. If necessary, it shall propose suitable measures to extend the scope.