On 17 December 2021, ESMA published a revised draft of its UCITS Q&A document with new clarifications of the issuer concentration rules and the share class marketing rules introduced by the Cross-Border Distribution of Funds (CBDF) regime. In what is likely a disappointing, albeit not entirely unexpected clarification of the share class marketing rules, ESMA has confirmed the CBDF requirement for one month's prior notice to home and host authorities of the cross-border marketing of a UCITS share class. As previously reported (see here)., the one-month advance notification requirement represents a material departure from the pre-CBDF market practice for passporting a new share class and, since coming into effect on 2 August 2021, has had a significant and unwelcome impact on UCITS managers marketing processes and procedures.
ESMA Guidance on UCITS Issuer Concentration and Marketing Rules Click here for article
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