Cross-Border Fund Distribution Rules: Welcome Changes In The Pipeline

In our latest update, our Global Registration Services team write about the important new EU developments relating to the cross-border distribution of investment funds under the Capital Markets Union ("CMU").

Important new EU developments relating to the cross-border distribution of investment funds under the Capital Markets Union ("CMU") are imminent. The EU is about to finalise new rules to facilitate and encourage cross-border fund distribution by removing regulatory barriers and improving cost efficiency. It is also intended to allow EU AIFMs to test market interest in an EU jurisdiction before incurring the expense of passporting an AIF into that jurisdiction. This note discusses the main changes and examines how they may affect your business when distributing UCITS or AIFs cross-border.