European Directive and Regulation on cross-border distribution of funds (CBDF) –  key changes?

An Amending Directive and Regulation on cross-border distribution of funds came into force on 20 June 2019. Directive 2019/1160, which amends relevant provisions of the UCITS Directive and AIFMD, is due to be transposed by 2 August 2021. The substantive provisions of Regulation 2019/1156 are to apply from the same date. The intention is to encourage more cross border fund marketing by removing regulatory barriers to efficient cross border marketing and to align the foreign registration process for UCITs and AIFs. The guidance will be relevant for investment funds, fund management companies as well as EuVECA and EuSEF managers. The Asset Management & Investment Funds team take a look at the key changes for investment funds and fund managers. The Directive amends local facilities requirements, aligns the UCITS procedure for notifying competent authorities of changes with AIFMD and introduces a prescribed form of de-registration from marketing for both UCITS and AIFs. The Regulation introduces a new "pre-marketing" concept for AIFs, details requirements for marketing communications for both UCITS and AIFs and requires National Competent Authorities to provide ESMA with hyperlinks to information on their marketing requirements.

As part of our Soundbite Series, the Asset Management & Investment Funds team describe the key changes introduced by CBDF for investment funds and fund management companies.

ALG AudioLab · European Directive and Regulation on cross-border distribution of funds (CBDF) – key changes?Description: This audio update refers to key changes regarding the European Directive and Regulation on cross-border distribution of funds (CBDF).

Description: This audio update refers to key changes regarding the European Directive and Regulation on cross-border distribution of funds (CBDF).

Further information is available in our Harmonisation of cross-border distribution of UCITS and AIFs insight.

For further information in relation to this topic, please contact Mary McKenna, Partner, Nollaig Greene, Knowledge Lawyer, Sandra O' Connor, Global Fund Registration Services Team Leader, or any member of our Asset Management & Investment Funds team.

Date published: 29 July 2021