Press release
Minister Donohoe signs EU Regulations into law to improve the cross-border distribution of investment funds
Published on
Last updated on
Published on
Last updated on
The Minister for Finance, Paschal Donohoe T.D. has signed two sets of regulations – the European Union (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2021 and the European Union (Alternative Investment Fund Managers) (Amendment) Regulations 2021 – to give effect to Directive (EU) 2019/1160 on the Cross-border Distribution of Collective Investment Undertakings or “CBD Directive”.
The overall objective of the CBD Directive is to facilitate EU cross-border distribution of undertakings for collective investment in transferable securities (“UCITS”) and alternative investment funds (“AIFs”) and to harmonise the regulatory framework governing the distribution of such investment funds. The main changes introduced by the CBD Directive include the so-called pre-marketing regime, the requirement to provide local facilities for AIFS and UCITS marketed to retail investors, and the marketing de-notification process of AIFs and UCITS.
ENDS
Notes for Editors
The EU’s new regulatory framework facilitating the cross-border distribution of collective investment undertakings comprises:
1. A Regulation ((EU) 2019/1156) on facilitating cross-border distribution of collective investment undertakings and amending the EUVECA (Regulation (EU) No 345/2013) and EUSEF (Regulation (EU) No 346/2013) Regulations; and
2. A Directive ((EU) 2019/1160) which amends the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive and the Alternative Investment Fund Managers Directive (AIFMD) with regard to cross-border distribution.
The CBD Regulation, which is directly effective, came into effect in August 2019 with the provisions relating to marketing largely commencing from 2 August 2021.