Distributing a Fund

UCITS have gone from strength to strength with Europe as the most popular market for distributing UCITS funds. UCITS benefit from a European Economic Area (EEA) wide “passport” which means that once they are authorised in one EEA member state, they can be sold in any other EEA member state without the need for any additional authorisation.

The Alternative Investment Funds industry includes hedge funds, private equity, venture capital and real estate funds. Any asset managers wishing to market and distribute AIFs in Europe will have to carefully consider the implications of the Alternative Investment Fund Managers Directive (AIFMD).

National Private Placement Regimes principally relates to the marketing of non-EEA AIFs and AIFs managed by non-EEA AIFMs. The fund registration process varies from country to country and must be considered on an individual basis when making applications to ensure that all the requirements of each member state are met.

There are a number of regulatory developments that have affected or may affect fund distribution in the future: Irish Collective Asset management Vehicle (ICAV), PRIIPs, and Markets in Financial Instruments Directive (MiFID II).