On 31 March, ESMA published a consultation paper concerning draft implementing technical standards (“ITS”) under the Regulation on cross-border distribution of funds, both UCITS and AIFs.

The consultation paper was prompted by the updated Regulation (EU) 2019/1156 covered in our fund distribution alert of 16 July 2019, issued along with a directive to facilitate fund distribution, and concerns information which is to be published by national competent authorities (“NCAs”) on the following subjects:

• The publication of local laws and regulations applicable to the marketing requirements of UCITS and AIFs in their jurisdiction, particularly how exhaustive it should be;
• The approach to take regarding the format of the publications;
• Which should be the main characteristic of the summary of marketing requirements;
• How to present fees and charges on cross-border activities, particularly whether it should be by means of a table or descriptive text;
• The use of the upcoming central database listing UCITS and AIFs marketed on a cross-border basis.

In the paper ESMA provides suggestions to each of the listed items and asks for input. Where the suggested approach is not supported, ESMA encourages the provision of an alternative.

Comments must be provided by 30 June 2020 to be considered by ESMA and the final report is expected by 2 February 2021.

The consultation paper is available here.

Please feel free to contact us should you require any additional information.

Said Fihri
Partner
+352 22 51 51 7892
said.fihri@kpmg.lu

Stephanie Zedda
Senior Manager
+352 22 51 51 7271
stephanie.zedda@kpmg.lu