Regulation (EU) 2019/1156 on facilitating cross-border distribution of collective investment funds

Summary:

Regulation (EU) 2019/1156 of the European Parliament and of the Council of 20 June 2019 amending Regulations (EU) No 345/2013, (EU) No 346/2013 and (EU) No 1286/2014 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).

This 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 proposal 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 the 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.

Official

EUR-Lex: COM(2018)110: Proposal for a Regulation on facilitating cross-border distribution of collective investment funds https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2018:110:FIN

EUR-Lex: SWD(2018)54: Impact assessment https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2018:054:FIN

EUR-Lex: SWD(2018)55: Executive summary of the impact assessment https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2018:055:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on cross-border distribution of collective investment funds: marketing and regulatory fees https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2018/0045(COD)

European Parliament: Legislative Train: Cross-border distribution of investment funds: marketing and regulatory fees http://www.europarl.europa.eu/legislative-train/theme-deeper-and-fairer-internal-market-with-a-strengthened-industrial-base-financial-services/file-cross-border-distribution-of-investment-funds-marketing-and-regulatory-fees/05-2019

European Commission: Press Release, 12/03/2018: Capital Markets Union: breaking down barriers to cross-border investments and accelerating delivery http://europa.eu/rapid/press-release_IP-18-1364_en.htm

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 http://europa.eu/rapid/press-release_MEMO-18-1425_en.htm

European Commission: Speech, 12/03/2018: Opening remarks by Vice-President Dombrovskis on the Capital Markets Union http://europa.eu/rapid/press-release_SPEECH-18-1822_en.htm

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 https://www.consilium.europa.eu/en/press/press-releases/2019/02/05/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 https://www.consilium.europa.eu/en/press/press-releases/2019/06/14/capital-markets-union-council-adopts-new-rules-facilitating-access-to-pension-products-and-investment-funds/

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Commentary and Analysis

EPRS: Briefing, August 2018: Cross-border distribution of collective investment funds [Initial Appraisal of a European Commission Impact Assessment] http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2018)621849

EPRS: Briefing, April 2019: Cross-border distribution of investment funds [EU Legislation in Progress] http://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_BRI(2018)625106

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