Cross-border distribution of collective investment funds (Directive/Regulation)

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The EU Commission wants to contribute to the promotion of the cross-border sale of investment funds. The corresponding proposals for a regulation and a directive provide, among other things, that so-called undertakings for collective investments in transferable securities (UCITS) and alternative investment funds (AIF) may not be obliged to be "physically present" in the host Member States.


The cep welcomes the proposal to remove the obligation for a physical presence. This can reduce distribution costs and facilitate market entry. From the cep's perspective, the proposal on UCITS and retail AIF reduces distribution costs and thus facilitates their market entry. However, in a market economy, there is no convincing reason to legislate on the conditions under which an investment fund manager may cease marketing its fund. The requirement that supervisory fees be proportionate to the costs of supervisors cannot be based on the internal market competence.