Cross-Border Fund Marketing Post August 2021: Six Key Impacts of New EU Fund Distribution Rules
The EU Cross-Border Distribution of Funds legislation first comes into effect for UCITS managers and AIFMs on 2 August 2021. In this briefing we analyse the impact of these new legislative measures, focussing on six key impacts of which fund managers should be aware.

 

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:

  1. an end to physical local facilities
  2. protracted UCITS process for changes post-passporting 
  3. enhanced marketing disclosure requirements 
  4. new harmonised procedure for ceasing to market UCITS or AIFs 
  5. pre-marketing of AIFs permitted
  6. limited benefit for non-EU AIFMs

Cross-Border Fund Marketing Post August 2021

Key Contacts

Marion Mellett Consultant

Patricia Taylor Partner

James Phelan Partner