Proposal for a Directive amending Directive 2009/65/EC and Directive 2011/61/EU with regard to cross-border distribution of collective investment funds

Author (Corporate)
Series Details COM (2018) 92
Publication Date 12/03/2018
Content Type


Legislative proposal published by the European Commission in March 2018, which amends certains provisions in Directive 2009/65/EC and Directive 2011/61/EU as regards cross-border distribution of investment funds in the European Union.

Further information:

Investment funds are investment products created with the sole purpose of pooling investors’ capital, and investing that capital collectively through a portfolio of financial instruments such as stocks, bonds and other securities. In the EU, investment funds can be categorised as undertakings for collective investment in transferable securities (UCITS) and alternative investment funds (AIFs) managed by alternative investment fund managers (AIFMs).

The proposed Directive harmonises the conditions under which investment funds may exit a national market and allows European asset managers to test the appetite of potential professional investors for new investment strategies through pre-marketing activities. Its purpose is to reduce regulatory barriers to the cross-border distribution of investment funds.

The proposed Directive was adopted by the European Commission on 12 March 2018 as part of a package of legislative initiatives aimed at completing the Capital Markets Union (CMU). The draft law was scheduled in the Commission Work Programme 2018 and should be seen in the broader context of the CMU action plan and the CMU Mid-Term Review. The Council of the European Union adopted a general approach on this proposal on 15 June, while the European Parliament adopted its own negotiating position on 6 December. An informal agreement between the institutions on a compromise text was reached on 5 February 2019. The Parliament formally endorsed it on 16 April 2019, followed by the Council on 14 June.

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Commentary and Analysis
EPRS: Briefing, August 2018: Initial Appraisal of a European Commission Impact Assessment
EPRS: Briefing, April 2019: Cross-border distribution of investment funds

EUR-Lex: SWD(2018)54 - Staff Working Document
EUR-Lex: SWD(2018)55 - Staff Working Document
European Parliament: Legislative Observatory: Procedure File for Proposal on cross-border distribution of collective investment funds: pre-marketing and de-notification
EP: Legislative Train: Cross border distribution of investment funds | Pre-Marketing and De-Notification
European Commission: Press Release, 12/03/2018: Capital Markets Union: breaking down barriers to cross-border investments and accelerating delivery
European Commission: Opening remarks by Vice-President Dombrovskis on the Capital Markets Union, 12/03/2015
European Commission: Fact Sheet, 12/03/2018: Capital Markets Union: covered bonds, cross-border distribution of investment funds and cross-border transactions in claims and securities
Council of the European Union, 14/06/2019: Capital markets union: Council adopts new rules facilitating access to pension products and investment funds

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