Short Guide Related To Funds For Marketing Investment

The EU or the European Union is defined as the political and economic union. It comprises of 28-member states, which are independent. The marketplace of EU has a huge population and also has a strong place in the industry of investment fund. It has massive significance both in the institutional and retail sectors of funds starting from provision of service to the consumers to the management of assets. The EU or the European Union is defined as the political and economic union. It comprises of 28-member states, which are independent. The marketplace of EU has a huge population and also has a strong place in the industry of investment fund. It has massive significance both in the institutional and retail sectors of funds starting from provision of service to the consumers to the management of assets.

The marketplace of EU is not however straightforward. It is comprised of three different regimes, which have their own criteria and operational characteristics. Here is a brief guide, which offers knowledge about the important regimes for investment in EU.

UCITS Regime:

UCITS is defined as the collection of various investment schemes, which are authorised under the legal framework of EU. This framework states that the investment scheme that is established under one member state can be sold to other member states of EU without the need for further authorisation. This regime came into existence about twenty years ago and since then there has been a lot of additions and enhancements made to it.

The most vital product of the regime is the European passport. This helps the fund promoters to design investment schemes for EU rather than developing products on the basis of specific jurisdictions. As such for the transfer of schemes from one state to another, the UCITS passport plays a vital role. Every member state has to follow the regulations required for issuing the passport. Listed below are certain points which are covered in the notification letter related to UCITS:

The legal form of the investment
The management company if applicable
The marketing arrangements designed for the UCITS in the other member state
What are the provisions made for payment to the unitholders of the host state?
What are the provisions made for the availability of information for the unitholders?

Apart from this, several other vital documents require submission to the host regulator for the smooth transmission of the file. The procedure might sound quite complex but taking the help of experts in the field, the process gets smoothed out a lot. There are also reputed associations, which help investors with global funds registration.

AIFMD Regime:

This regime deals with various alternative funds like the real estate funds, hedge funds, equity funds, etc. This framework has been developed to supervise and regulate these alternative funds in EU. This single marketplace has been designed to market the AIFs. Earlier, this marketing was only available for the UCITS funds. Under the directive of this regime, the central point for fund investment is the AIFMD marketing passport. The rules of the regime are quite transparent and also involves the monitoring of systemic risks of the unitholders. Proper cooperation between the foreign and local regulators is also important for the success of the regime.

Since the regulations for fund passporting require adequate knowledge in the field and proper filing of the papers, reliable authorities must be hired for the task. They are aware of the specifications and updates that get included in the regimes from time to time, which make the process of passporting quite smooth.


By: Fuentes Troy

Get acquainted with the dynamics of the AIFMD private placement in Europe with our White Paper and learn about the main hurdles and how to successfully overcome them. We provides authorized European Alternative Investment Fund Managers (EU AIFM) with a marketing passport.

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Article Tags: AIFMD marketing passport ,

Submitted On Mar 12, 2018. Viewed 31 times.

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