Regulation (EU) 2019/1156 on facilitating cross-border distribution of collective investment undertakings (Text with EEA relevance.)

What it is

to reduce the barriers to the cross-border distribution of investment funds in the EU. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: this proposal should be seen in the broader context of the Capital Markets Union (CMU) action plan and the CMU Mid-Term Review , to establish a genuine internal capital market by addressing fragmentation in the capital markets, removing regulatory barriers to the financing of the economy and increasing the supply of capital to businesses. The Committee on Economic and Monetary Affairs adopted the report by Wolf KLINZ (ALDE, DE) on the proposal for a regulation of the European Parliament and of the Council on facilitating cross-border distribution of collective investment funds and amending Regulations (EU) No 345/2013 and (EU) No 346/2013. The proposal for a Regulation aims to remove the regulatory barriers that currently hinder the cross-border distribution of investment funds in order to make their cross-border distribution simpler, faster and less costly. The committee recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the Commission's proposal. Fees or charges : there is a need to ensure better recovery of fees or charges and to increase transparency and clarity of the fees and charges structure. Fees or charges levied by a competent authority in carrying out its duties in relation to the cross-border activity of alternative investment fund managers (AIFMs), European Venture Capital Funds (EuVECA) managers, European Social Entrepreneurship Fund (EuSEF) managers and undertakings for collective investment in transferable securities (UCITS) management companies shall be consistent with the actual costs incurred by the competent authority for carrying out its functions with respect to these duties. Competent authorities shall send an invoice , an individual payment statement or a payment instruction to the appropriate address. The invoice shall indicate the fees or charges, the means of payment and the date when payment is due. European Securities and Markets Authority (ESMA) central database on cross-border marketing of AIFs and UCITS : by 24 months after the date of entry into force of this amending Regulation, ESMA shall publish on its website a central database for the cross-border marketing of AIFs and UCITS, publicly accessible in a language customary in the sphere of international finance, listing: (i) all AIFs that are marketed in another Member State, their AIFMs, EUSEF manager or EUVECA manager, and a list of Member States in which they are marketed; and (ii) all UCITS that are marketed in another Member State, their UCITS management companies, AIFs and UCITS which those AIFMs and UCITS management company and a list of the Member States in which they are marketed. Marketing communications shall also specify where, how and in which language investors or potential investors can obtain a summary of investor rights and…

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