Implementation of Cross-Border Distribution of Funds Directive

Eligibility of US GAAP for certain AIFs

On 12 July 2019, Directive 2019/1160 on the cross-border distribution of collective investment undertakings was published in the Official Journal of the European Union as part of the Cross Border Distribution of Funds package (“CBDF” i.e. Directive 2019/1160 and Regulation 2019/1156).

The purpose of this Directive is to harmonise and facilitate the cross-border marketing and distribution of undertakings for collective investment in transferable securities (“UCITS”) and alternative investment funds (“AIFs”) within the European Union. It aims at reducing the remaining regulatory barriers and improving cost efficiency, whilst continuing to ensure better investor protection.

Member States are required to implement the Directive into national legislation by 2 August 2021.

The full note regarding the CBDF package can be found here.

Key changes

  • Pre-marketing
  • Marketing change notifications
  • De-notification
  • New rules on marketing communications
  • Facilities for retail investors