Cross border funds: 5 practical aspects for AIFMs

The new regulation and directive on cross-border distribution of collective investment undertakings introduce: (i) a definition of pre-marketing, (ii) uniform requirements for marketing materials, (iii) the possibility of ex-ante notification of marketing materials (when marketing to retail investors), (iv) rules for de-notification, (v) new rules aimed at transparent and proportionate fees and charges levied by competent authorities and (vi) a new central (ESMA) database on the cross-border marketing of collective investment undertakings.

Background

The long awaited regulation ((EU) 2019/1156) and directive ((EU) 2019/1160) with respect to the cross-border distribution of collective investment undertakings were recently published in the official EU journal (the Cross-border Laws). Aim of the Cross-border Laws is to reduce (regulatory) barriers currently hindering cross border distribution of investment undertakings.