Fund distribution and cross border managed services

UCITS marketing passport

The UCITS marketing passport allows a UCITS to be marketed in any other Member State (“Host Member State”) upon authorization of its Home Member State. The relevant notification has to be submitted to the Home state regulator of the UCITS which review and then transmit the application to the concerned Host Member State.

Although harmonized, the registration process can have specificities in some of the countries. Our experience will help the fund in the preparation of a complete file to ensure the reception of the approval in a timely manner.

The experts of our regulatory consulting expertise driven by Arendt Regulatory & Consulting S.A. (ARC) assist the UCITS throughout the entire process:

• Identification of the information/documents needed per country to prepare and finalise the notification package, liaising with the UCITS corresponding intermediaries, if any;
• Preparation of the notification package and submission to the UCITS’ home country regulator;
• Follow-up of the file until it is considered complete by the regulator, including any potential feedback from the host regulators;
• Ensure maintenance obligations.

UCITS management passport

The cross-border management of UCITS also requires the fulfilment of a passporting procedure. Our team assists IFMs in swiftly obtaining this passport.

AIFM marketing passport

The AIFM marketing passport mirrors to some extent the one existing for UCITS funds.

A notification must be made to the home regulator of the AIFM and the maintenance of this registration needs to be ensured at all times thereafter.

Even though the registration process has been harmonised by the AIFMD, local specificities imposed by the host countries of distribution remain. A good knowledge of these requirements is key to rapidly get the benefit of the passport.

The experts of our regulatory consulting expertise driven by Arendt Regulatory & Consulting S.A. (ARC) assist AIFMs throughout the entire process:

• Identification of the information/documents needed per country to prepare and finalise the notification package, liaising with the AIFM’s corresponding intermediaries, if any
• Preparation of the notification package and submission to the AIFM’s home country regulator
• Follow-up of the file until it is considered complete by the regulator, including any potential feedback from the host regulators
• Ensure maintenance obligations

AIFM management passport

The cross-border management of AIFs also requires the fulfilment of a passporting procedure. Our team assists AIFMs in swiftly obtaining this passport.

Even if the UCITS notification is a well-known process, its successful outcome requires strict compliance with numerous technical and administrative requirements, as illustrated by the CSSF annual report of 2015: indeed, during that year, 39% of initial notification files were rejected by the CSSF. This triggers additional delays and costs.

Our regulatory consulting expertise driven by Arendt Regulatory & Consulting S.A. (ARC) has a dedicated notification team composed of highly experienced consulting and IT experts, who are able to cover the various facets of the process. This team covers all notifications or registrations of UCITS marketed in EU or outside EU, and the maintenance thereof:

• Notification and maintenance of UCITS using their passport in EEA countries
• Registration and maintenance of UCITS in non-EEA countries

The AIFMD marketing rules create a variety of situations and corresponding marketing possibilities and constraints, which sometimes require to be looked at through the lenses of each distribution country.

Indeed, there are cases where the EU marketing passport does not work:

• When there is a third country set-up (with non EU AIFM and/or non EU AIF)
• When selling to non-professional investors
• When the AIFM is sub-thresholds

In such cases, depending on the country targeted, actions to be taken to be able to market in a compliant manner vary, from a simple notification to a full authorisation process.

Our expert team assists AIFMs in connection with any applicable process towards authorities, as prescribed by local regulations.

AIFM marketing passport

The AIFM marketing passport mirrors to some extent the one existing for UCITS funds.

A notification must be made to the home regulator of the AIFM and the maintenance of this registration needs to be ensured at all times thereafter.

Even though the registration process has been harmonised by the AIFMD, local specificities imposed by the host countries of distribution remain. A good knowledge of these requirements is key to rapidly get the benefit of the passport.

The experts of our regulatory consulting expertise driven by Arendt Regulatory & Consulting S.A. (ARC) assist AIFMs throughout the entire process:

• Identification of the information/documents needed per country to prepare and finalise the notification package, liaising with the AIFM’s corresponding intermediaries, if any
• Preparation of the notification package and submission to the AIFM’s home country regulator
• Follow-up of the file until it is considered complete by the regulator, including any potential feedback from the host regulators
• Ensure maintenance obligations

AIFM management passport

The cross-border management of AIFs also requires the fulfilment of a passporting procedure. Our team assists AIFMs in swiftly obtaining this passport.

For more information please download our brochure or contact us.