Cross-Border Distribution Of Collective Investment Schemes

Author:Mr Nicholas Blake-Knox, Jennifer Fox, Sarah Maguire and Eimear Keane


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.


The European Commission's intention is that these texts will be adopted before the European Parliament elections in May 2019. As such the Parliament plans to consider the proposals before the end of the current legislative term on 18 April, 2019. Each legislative act will enter into force on the twentieth day following its publication in the official Journal of the European Union. Member states will have twenty-four months from the date of entry into force of the Directive to transpose the provisions thereof into national law. Progress on drafting of Irish implementing measures are understood to be at an advanced stage. The Regulation will apply from the date of entry into force except for certain provisions which will apply twenty-four months after the date of entry into force, i.e.

paragraph 1 and 4 of Article 2 relating to marketing communications; paragraph 1 and 2 of Article 3 relating to the publication of national provisions concerning marketing requirements; Article 12 relating to amendments to Regulation (EU) No 345/2013 on European venture capital funds; and...

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