Cross-Border Distribution of Collective Investment Funds
11 August 2020
The regulatory landscape for marketing funds in Europe is complex due to the divergent approaches taken by the various Member States in implementing fund distribution and marketing rules.
The intention of the new rules for the cross-border distribution of funds is to take steps towards addressing this lack of harmonisation and they are comprised in a new directive and a new regulation (together, the “Adopted Texts”). We will address the key changes stemming from these Adopted Texts in terms of their impact on the AIFMD but also touch in some instances on the UCITS Directive where there are corresponding obligations and rules for AIFMs and UCITS. In particular, we will focus on:
- The new rules concerning pre-marketing by an EU AIFM ahead of seeking an AIFMD passport and entering into the within 20 working days marketing passport approval period;
- Changes to the requirements regarding local facilities where marketing to investors in a particular Member State;
- The rules governing the cessation of marketing in a Member State commonly referred to as “denotification”;
- Clarification of regulatory fees that may be charged by Member State regulators in respect of marketing notifications; and
- Efforts to increase the transparency of each Member State’s marketing rules with the introduction of an ESMA database.