In March 2018, the European Commission ("Commission") proposed amendments to both the UCITS and AIFM Directives aimed at removing identified regulatory barriers to the crossborder distribution of investment funds. On 5 February 2019 political agreement on these proposals was reached. The key legislative changes will include a definition of "pre-marketing" under AIFMD, which will permit alternative fund managers to more easily test the appetite of potential professional investors in new markets; and harmonising the de-notification procedure. The final texts of the proposals have yet to be finalised and adopted by both the European Parliament and Council, but it is intended that these legislative proposals on cross border distribution will be agreed by Q2 2019.

This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.