Ireland - Cross-Border Distribution of Collective Investment Schemes

On 12 March, 2018 the European Commission presented its original proposals for a Directive and accompanying Regulation on the crossborder distribution of collective investment schemes with the objective of addressing regulatory barriers which it had identified as a significant disincentive to EU cross-border distribution.

Following a period of negotiation and technical finalisation between the European Commission, the European Parliament and the Council of the EU, the Council on 22 February, 2019 published an “I” item note setting out the final compromise texts of the:

  • Proposed Directive amending the UCITS Directive and AIFMD with regard to the cross-border distribution of collective investment funds (the “Directive”); and
  • Proposed Regulation on facilitating cross-border distribution of collective investment funds (the “Regulation”).
The Directive and Regulation aim to ‘coordinate the conditions for fund managers operating in the internal market and facilitate cross-border distribution of the funds they manage’ by filling in the regulatory gaps, aligning the notification procedure to the competent authorities, authorising ESMA to develop new technical standards, improving the transparency of national requirements and ensuring national authorities can control AIFM’s pre-marketing arrangements, while all the while safeguarding investor protection.

 

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