Denmark: New rules for foreign UCITS and AIFs regarding retail investors

Guidance for foreign UCITS and AIFs regarding retail investors

Guidance for foreign UCITS and AIFs regarding retail investors

Executive orders (effective 1 July 2021) concern the distribution of foreign funds in Denmark and specifically cover the marketing of foreign UCITS* in Denmark, as well as foreign AIFs* to retail investors, and transpose requirements from EU Directive 2019/1160.

For foreign UCITS marketed in Denmark to retail investors, there is no longer a requirement to appoint a Danish representative.

The guidance also sets forth the facilities services that a fund is required to maintain for all investors—such as treatment of orders and payments, information about investor rights, and the provision of fund documents. These provisions now must be provided to Danish investors in the Danish language.

Similar changes were made with respect to AIFs distributed to retail investors in Denmark. A local representative is no longer required, but the fund must maintain facilities and information must be provided to Danish investors in Danish.

Read a July 2021 report prepared by the KPMG member firm in Luxembourg

*UCITS = Undertakings for the collective investment in transferable securities
*AIFs = Alternative investment funds


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