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Changes in EU Cross-border Distribution of Funds

July 2021


On 2 August 2021, most of the provisions of the EU Cross-Border Distribution of Funds (CBDF) legislation come into effect.

CBDF is looks to harmonise and reduce barriers to the cross-border marketing and sale of funds. It comprises

  • a Directive amending the cross-border marketing provisions of both the UCITS Directive and AIFMD and
  • a Regulation setting down disclosure rules for UCITS and AIF marketing communications; together with
  • additional guidance.

The Regulation is directly effective and applicable from 2 August 2021.  However, the provisions of the Directive must be transposed into national law before becoming applicable in individual Member States.

The deadline for transposing and applying provisions of the CBDF Directive under national law is 2 August 2021. 

Ireland, along with several other Member States, have yet to transpose the CBDF Directive (2019/1160), this briefing is based on the provisions of the CBDF Directive and could be impacted by individual Member States’ national laws transposing the CBDF Directive.

This means that there is a degree of uncertainty that will remain as at 2 August 2021.


The Six Key Impacts?


An end to physical local facilities


A more protracted notification process and changes to the passporting process


Enhanced marketing disclosure requirements


New enhanced harmonised procedure for cessation of marketing of UCITS and AIFs


Permitted pre-marketing of AIFs


Limited benefits for non-EU AIFMS

Need help?

We are happy to discuss, give advice or support on the impacts on your business and indeed all things regulatory. 

Please contact us as below:


Verena Charvet MBA,
Managing Director at Merlys Consulting

Connect:  https://www.linkedin.com/in/verenacharvet/

Email: verena.charvet@merlys.uk

Contact/Call us at Merlys | +44 (0)20 7821 0191

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Website: www.merlys.uk

This briefing note is intended to act as general guidance. Merlys is happy to assist with any aspect of the content in this article, as it relates to your business.