On 21 September 2018, the European Committee on Economic and Monetary Affairs published two draft reports (the "Reports") considering the European Parliaments' legislative proposals for a Regulation and a Directive on the cross-border distribution of collective investment funds that, among other things, contain amendments to the UCITS Directive and AIFMD:
1. Draft report on the proposal for a directive of the European Parliament and of the Council amending Directive 2009/65/EC of the European Parliament and of the Council and Directive 2011/61/EU of the European Parliament and of the Council with regard to cross-border distribution of collective investment funds (COM(2018)0092 – C8-0111/2018 – 2018/0041(COD)); and
2. Draft report on the proposal for a regulation of the European Parliament and of the Council on facilitating cross-border distribution of collective investment funds and amending Regulations (EU) No 345/2013 and (EU) No 346/2013 (COM(2018)0110 – C8-0110/2018 – 2018/0045(COD))
The Reports are generally supportive of the legislative proposals. They primarily take the form of minor alterations to the phrasing of the texts and are mostly aligned with the European Council's approach. For further background, please see Maples' client update UCITS and AIFMD Update: Cross-Border Fund Distribution Proposals.
The Report's proposals relate to:
(i) The definition of and conditions relating to pre-marketing to professional investors which is proposed to be introduced in the AIFMD and in the EuVECA and EuSEF Regulations;
(ii) The marketing discontinuation provisions regarding the possibility for AIFMs and UCITS managers to cease marketing a fund which has previously been active in a particular host member state; and
(iii) The matter of fees or levies that can be charged by competent authorities, in particular in host member states, in relation to cross border activity of fund managers.