The paper presents the problem of financial safety, particularly the safety of participants of European open funds (UCITS). This problem has been undertaken because of the increasing significance of open funds on the homogeneous capital market. First the concept of new institutional economy is discussed concerning the role and place of markets and states in the formation of safety in transactions between investors and investment intermediaries. Next institutions which make up institutional environment of the European funds market are presented. Particularly, the role of legislator in the creation and intensification of safety of participants of UCITS fund has been emphasized. Then the attention is paid to Polish legislator in range of constructing and consolidating the safety of holders of participation units in the context of its influence on the activity and competitiveness of open funds sector e (UCITS) in Poland.