EU cross-border distribution of funds – implications for UK managers

New rules to harmonise themarketing and pre-marketing process within the European Union will have animpact on United Kingdom and other non-EU managers that market their funds intothe bloc, reports Leonard Ng.

LeonardNg isco-head of law firm Sidley Austin’s UK/EU Financial Services Regulatory group.He may be contacted on lng@sidley.com. Based inthe London office, Leonard is a member of the firm’s executive committee andadvises a wide range of global financial institutions on complex UK and EUfinancial services regulatory issues.

From2 August 2021, a new legislative package on the EU cross-border distribution offunds (CBDF) is required to be implemented in member states. This newlegislative package follows the European Parliament’s vote in its plenarysession in 2019 to adopt fresh rules relating to the cross-border distributionof collective investment funds, and is made up of a directive (CBDF Directive)and a regulation (CBDF Regulation).