New EU regulation and directive amending the UCITS and AIFM directives as well as the EuSEF, EuVECA and PRIIPs regulations

On 12 July, the Official Journal of the European Union published the new EU cross-border fund distribution directive and regulation:

• Directive (EU) 2019/1160 of 20 June 2019, amending the UCITS and Alternative Investment Fund Manager directives (‘UCITSD’ and ‘AIFMD’) (the ‘Directive‘)

• Regulation (EU) 2019/1156 of 20 June 2019, on facilitating cross-border distribution of collective investment undertakings and amending European social entrepreneurship funds (‘EuSEF’), European venture capital funds (‘EuVECA’) and packaged retail and insurance-based investment products (‘PRIIPs’) regulations (the ‘Regulation’)

EU member states have to include the Directive into national law by 2 August 2021. It will apply as from that date to cross-border distribution of UCITS, AIFs, EuSEF and EuVECA.

The main changes to the UCITSD and AIFMD are the following:

1) Removal of requirement to appoint a local entity fulfilling the paying – and/or information agent function

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