Proposal for a Regulation on facilitating cross-border distribution of collective investment funds

Author (Corporate)
Series Details COM (2018) 110
Publication Date 12/03/2018
Content Type


Legislative proposal published by the European Commission in March 2018, which amends Regulation (EU) No 345/2013 and Regulation (EU) No 346/2013 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 Regulation aligns national marketing requirements and regulatory fees, and harmonises the process and requirements for the verification of markeitng material by national competent authorities. It also further enables European Securities and Markets Authority (ESMA) to better monitor investment funds.

The draft law 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). It 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 co-legislators 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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Related Link(s)
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: marketing and regulatory fees
EP: Legislative Train: Cross-border distribution of investment funds: marketing and regulatory fees
European Commission: Press Release, 12/03/2018: Capital Markets Union: breaking down barriers to cross-border investments and accelerating delivery
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
European Commission: Opening remarks by Vice-President Dombrovskis on the Capital Markets Union, 12 March 2018
Council of the European Union: Press Release, 05/02/2019: Capital markets union: political agreement on simpler and quicker cross-border distribution of investment funds
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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