The Directive (EU) 2019/1160 on facilitating cross-border distribution of collective investment funds (the ‘CBFD Directive’) must be transposed by each EU/EEA Member State on the 2nd of August at the latest. The CBFD Directive is complemented by provisions of the EU Regulation 2019/1156, a part of which shall also be in force on the 2nd August 2021.
As a reminder, the CBFD Directive provides amendments to the Directive 2009/65/EC (UCITS IV) and to the Directive 2011/61/EU (AIFMD), principally:
- Amendments to Directive 2009/65/EC, the UCITS IV Directive, including inter alia amendments in relation to the notification of changes for branches of UCITS management companies established in another EU Member State, the repeal of the provisions on marketing communications to investors, amendments in the provision of investors facilities from local and/or from abroad, amendments in the notification letter when cross-border marketing units of UCITS, the establishment of a EU harmonised procedure for discontinuation of marketing units of UCITS in each host Member States
- Amendments to Directive 2011/61/EU, the AIFM Directive, including inter alia amendments in relation to the establishment of a pre-marketing option for EU AIFM towards professional investors only, the establishment of a EU harmonized procedure for discontinuation of marketing units of AIFs in each host Member States, amendments in the notification of changes relating to the management of EU AIFs established in a Host Member State, the provision of retail investors facilities from local and/or from abroad, an assessment of the AIFM passport regime, and amendments to the Annex IV relating to documentation and information on EU AIFs marketed in Host Member States
In addition, remaining provisions of the CBFD Regulation shall also enter into force on 2nd August 2021:
- Requirements applicable to marketing communication of UCITS, AIFs, EuVECA and EuSEF
- Publication of local marketing material rules by each local Competent authorities
- Amendement of the Regulation (EU) No 345/2013 on European venture capital funds establishing a pre-marketing option for EuVECA towards professional investors
- Amendement of the Regulation (EU) No 346/2013 on European social entrepreneurship funds establishing a pre-marketing option for EuSEF towards professional investors
A few transpositions or draft bills are known at the moment and, as a consequence, a number of uncertainties remain unfortunately. Significant changes in regard to cross-border distribution of investment funds therefore apply from the 3rd of August.
Our market intelligence team carries out a specific daily monitoring on the transposition of the CBFD Directive in each Member State; the FundGlobam fact files are updated accordingly. In the same time, our distribution support team reviews each situation with clients.
FundGlobam will be happy to assist you should you require any further information.