Harmonization of Cross-Border Investment Fund Distribution

Summary

This directive harmonizes the rules for distributing investment funds across the EU, simplifying marketing processes and modernizing investor facilities.
10 12.07.2019
Other
finance
economy
european union
administrative law
business and competition

Key points

  • The directive aims to harmonize the cross-border distribution of various types of investment funds within the EU.
  • A standardized definition of 'pre-marketing' is introduced to allow managers to test investor appetite for new strategies.
  • Fund managers are no longer required to maintain a physical presence in every Member State where they market their funds.
  • Clear rules are established for 'denotification,' allowing funds to stop marketing in a country while protecting existing investors.
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