ESMA consults on Level 2 Cross-Border Distribution Regulation measures

What’s been published?

ESMA has published a consultation paper on the standard forms, templates and procedures to be used by national competent authorities (NCAs) when publishing information on their websites under the Cross-Border Funds Distribution Regulation.

The consultation closes on 30 June 2020.

What’s the background to this?

Under the Regulation, each NCA must publish on its website information regarding:

• applicable national laws, regulations and administrative provisions
  governing marketing requirements for AIFs and UCITS, together with
  summaries of these; and

• the fees and charges it can levy in carrying out its duties in
  relation to the cross-border activity of UCITS ManCos and AIFMs, including
  (where applicable) how these are calculated

The NCA must also notify ESMA of hyperlinks to these sites so ESMA can publish and maintain a central database containing the hyperlinks and summaries provided to it.

In addition, ESMA must publish a publicly accessible central database listing (a) all AIFs and UCITS that are marketed in a Member State other than the home Member State of the AIFM or UCITS ManCo, (b) their AIFM or ManCo, and (c) a list of the Member States in which they are marketed.

The consultation paper sets out draft Level 2 measures for the standard forms, templates, and procedures that NCAs should use to publish and notify the above information.

After the end of the consultation period on 30 June 2020, ESMA will consider the feedback it receives and expects to publish a final report by 2 February 2021.

The Cross-Border Funds Distribution Regulation and Directive come into effect on 2 August 2021. See our previous Insights publication for a summary of their contents.

Does this affect me?

Although directly applicable to NCAs rather than AIFMs or UCITS ManCos, the technical standards on which ESMA is consulting will determine the content and format of the information which NCAs and ESMA will subsequently publish. Since this information will be of use (or, at very least, of interest) to managers, it is important that the opportunity is taken to ensure that the correct information is gathered and that this is presented in the most helpful way possible