Cross-Border Fund Distribution Update

The legislative measures include amendments to the cross-border distribution provisions of the UCITS Directive and AIFM Directive with the aim of reducing barriers to the distribution of funds and will be signed into law today, 20 June, 2019. Following publication in the Official Journal shortly after signature these will enter into force 20 days later. In light of the 24 month transposition period following publication we expect that the key aspects of the new regime will go live in July 2021.

The Directive and Regulation enhance the current regulatory framework applying to the cross-border distribution of investment funds. In particular, the measures will:

• make it easier for EU alternative investment fund managers ("AIFMs") to test the appetite of potential professional investors in new markets, by introducing an ability for EU AIFMs to undertake "pre-marketing" of AIFs;