The new rules on the promotion of funds introduced by the new Cross-Border Distribution of Collective Investment Undertakings Directive1 and Regulation2 (Cross-Border Distribution of Funds (CBDF) Rules) are due to apply in the EU from 2 August 2021.3 Equivalent rules are not currently being implemented in the UK.
The CBDF Rules will have an impact on investment managers and placement agents marketing funds4 in the EU. This note discusses the provisions under the CBDF Rules relating to pre-marketing activities by Alternative Investment Fund Managers (AIFMs), reverse solicitation, marketing communications, a new marketing deregistration process and marketing to non-professional investors.
2. When Do the New Rules Take Effect?
The rules entered into force on 1 August 2019 and will apply from 2 August 2021 in those EU member states that have implemented the CBDF Directive. The CBDF Regulation is directly applicable in the EU and will apply from 2 August 2021 without further implementation.
3. Does this Affect US, UK and Other Non-EU Managers?
The CBDF Rules are expressed to apply to EU AIFMs authorised5 under Alternative Investment Fund Managers Directive (AIFMD). However, EU member states may impose equivalent requirements on non-EU AIFMs. The application of the CBDF Rules to non-EU AIFMs is likely to vary between EU member states.
Application of the new pre-marketing regime to non-EU AIFMs is anticipated – but not confirmed – in a number of key…