The legislative measures include amendments to the cross-border distribution provisions of the UCITS Directive and AIFM Directive with the aim of reducing barriers to the distribution of funds and will be signed into law today, 20 June, 2019. Following publication in the Official Journal shortly after signature these will enter into force 20 days later. In light of the 24 month transposition period following publication we expect that the key aspects of the new regime will go live in July 2021.

The Directive and Regulation enhance the current regulatory framework applying to the cross-border distribution of investment funds. In particular, the measures will:

  • make it easier for EU alternative investment fund managers ("AIFMs") to test the appetite of potential professional investors in new markets, by introducing an ability for EU AIFMs to undertake "pre-marketing" of AIFs;
  • clarify customer service obligations for asset managers in their host Member State;
  • align procedures and conditions for managers of investment funds to exit national markets when they decide to terminate the offering or placement of their funds;
  • introduce increased transparency through the creation of a single online access point for information on national rules related to marketing requirements and applicable fees; and
  • postpone the application of the Packaged Retail Investor Information Product (PRIIPs) disclosure regime for UCITS until 31 December 2021.

Please refer to our previous briefing note for further information on the details of the new legislation, here.

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