The texts of the EU’s new Directive and Regulation on the cross border distribution of investment funds have now been published in the Official Journal and their key provisions will take effect from 02 August 2021.
Following our previous elexica article on the new EU rules regarding the cross-border distribution of alternative investment funds (AIFs) and UCITS, the texts of the Directive and Regulation agreed by the European Parliament and Council of the EU have now been published in the Official Journal.
Timing of implementation
Publication of the Directive and Regulation signals the start of the timetable for their implementation.
On 01 August 2019 (the twentieth day following publication) the Directive and Regulation formally "enter into force".
By 02 August 2021, Member States must have transposed the provisions of the Directive into their national law.
On 02 August 2021, the key provisions of the Regulation become effective, namely:
- Article 4(1) to (5) - requirements for marketing communications
- Article 5(1) and (2) - publication of national provisions concerning marketing requirements and
- Articles 15 and 16 - extending the provisions to the EuSEF and EuVECA Regulations.
Overview of the new provisions
The new rules amend the Alternative Investment Fund Managers Directive (AIFMD) and the UCITS Directive to increase the harmonisation of cross-border marketing between both (a) the AIFMD and UCITS regimes and (b) different practices adopted by Member States.
The Directive introduces rules regarding:
- pre-marketing of AIFs
- provision of local facilities for AIFs and UCITS being marketed to retail investors
- a process to de-notify marketing of an AIF or UCITS in a host Member State
- alignment of certain notifications in respect of marketing an EU AIF or UCITS in a host Member State.
The Regulation contains rules on:
- requirements around marketing communications
- verification of marketing communications
- the creation of central databases for the publication of
- national marketing requirements
- fees and charges
- a list of AIFs, UCITS and their managers.
See our earlier note for a detailed summary of the new provisions.
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