On 2 August 2021, most of the provisions of the EU Cross-Border Distribution of Funds (CBDF) legislation come into effect. The CBDF legislation, designed to reduce barriers to the cross-border marketing and sale of funds, includes a Directive amending both the UCITS Directive and AIFMD and a directly effective EU Regulation which will be supplemented by ESMA Level 3 guidelines.
In this briefing we analyse six key impacts of the CBDF legislation and ESMA Level 3 guidelines on fund managers’ existing marketing operations and processes:
- an end to physical local facilities
- protracted UCITS process for changes post-passporting
- enhanced marketing disclosure requirements
- new harmonised procedure for ceasing to market UCITS or AIFs
- pre-marketing of AIFs permitted
- limited benefit for non-EU AIFMs