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
Date: 2018-03-12
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: European Securities and Markets Authority, UCITS fund, alternative investment, capital market, financial legislation, investment transaction, marketing

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   EUROPEAN COMMISSION  Brussels, 12.3.2018 COM(2018) 110 final 2018/0045 (COD)  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 (Text with EEA relevance) {SWD(2018) 54 final} - {SWD(2018) 55 final}  
 
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  Commission  has  today  adopted  a  package  of  measures  to  deepen  the  Capital Markets 
Union  (‘CMU’)  together  with  the  Communication  "Completing  Capital  Markets  Union  by 
2019 – time to accelerate delivery". The package includes this proposal and a proposal for a 
Directive amending Directive 2009/65/EC1 and Directive 2011/61/EU2 with regard to cross-
border distribution of collective investment funds, as well as a proposal for an enabling EU 
framework  on  covered  bonds,  a  proposal  for  an  enabling  framework  on  European 
crowdfunding service providers (ECSP)for businesses, a proposal on the law applicable to the 
third-party effects  of assignments of  claims, and a  Communication on the applicable law to 
the proprietary effects of transactions in securities. 

This proposal is expected to reduce the cost of going cross-border and should support a more 
integrated single  market  for  investment  funds.  Increased  competition  in  the  EU  will  help  to 
give investors more choice and better value. 
This proposal was scheduled in the Commission Work Programme 20183 and should be seen 
in  the  broader  context  of  the  CMU  action  plan4  and  the  CMU  Mid-Term  Review5,  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.  Regulatory  barriers,  namely  Member  States’  marketing  requirements, 
regulatory  fees  and  administrative  and  notification  requirements  represent  a  significant 
disincentive  to  the  cross-border  distribution  of  funds.  These  barriers  were  identified  in 
response to the Green Paper on Capital Markets Union6, the Call for Evidence on the EU 
regulatory framework  for  financial  services7  and  the  public  consultation  on  barriers  to 
the cross-border distribution of investment funds8. 

Investment funds are investment products created with the sole purpose of pooling investors’ 
capital, and investing that capital collectively through a portfolio of financial instruments such 
as  stocks,  bonds  and  other  securities.  In  the  EU,  investment  funds  can  be  categorised  as 

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Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination 
of  laws,  regulations  and  administrative  provisions  relating  to  undertakings  for  collective  investment  in 
transferable securities (UCITS), OJ L 302 17.11.2009, p. 32. 
Directive  2011/61/EU  of  the  European  Parliament  and  of  the  Council  of  8  June  2011  on  Alternative 
Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) 
No 1060/2009 and (EU) No 1095/2010, OJ L 174 1.7.2011, p. 1. 
Communication from the Commission to the European Parliament, the Council, the European Economic 
and  Social  Committee  and  the  Committee  of  the  Regions:  Commission  Work  Programme  2018  An 
agenda for a more united, stronger and more democratic Europe (COM(2017)650 final). 
Communication from the Commission to the European Parliament, the Council, the European Economic 
and  Social  Committee  and  the  Committee  of  the  Regions:  Action  Plan  on  Building  a  Capital  Markets 
Union (COM(2015)468 final). 
Communication from the Commission to the European Parliament, the Council, the European Economic 
and Social Committee and the Committee of the Regions: the Mid-Term Review of the Capital Markets 
Union Action Plan (COM(2017) 292 final). 
Green Paper: Building a Capital Markets Union, COM(2015) 63 final. 
Communication from the Commission to the European Parliament, the Council, the European Economic 
and Social Committee and the Committee of the Regions: Call for Evidence — EU regulatory framework 
for financial services, COM(2016) 855 final. 
https://ec.europa.eu/info/publications/consultation-cross-border-distribution-investment-funds_en. 

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undertakings  for  collective  investment  in  transferable  securities  (UCITS)  and  alternative 
investment funds (AIFs) managed by alternative investment fund managers (AIFMs). UCITS 
are  covered  by  Directive  2009/65/EC,  and  AIFs  are  covered  by  Directive  2011/61/EU. 
Directive 2011/61/EU is complemented by four fund frameworks:  

 

 

 

 

Regulation (No) 345/20139 on European venture capital funds,  
Regulation (No) 346/201310 on European social entrepreneurship funds,  
Regulation 2015/76011 on European long-term investment funds and  
Regulation 2017/113112 on money market funds.  

The  shared  purpose  of  these  rules  is  notably  to  make  cross-border  distribution  easier  while 
ensuring a high level of investor protection. 

Rules  for  EU  investment  funds  allow  managers  of  investment  funds  to  distribute,  and  with 
some exceptions, also to manage their funds across the EU. While EU investment funds have 
seen  rapid  growth,  with  a  total  of  EUR  14 310  billion  in  assets  under  management  in  June 
201713, the EU investment fund market is still predominantly organised as a national market: 
70 % of all assets under management are held by investment funds authorised or registered for 
distribution only in their domestic market. Only 37 % of UCITS and about 3 % of AIFs are 
registered for distribution in more than three Member States. Compared to the United States, 
the  EU  market  is  smaller  in  terms  of  assets  under  management.  However,  there  are 
considerably more funds in the EU (58 125 in the EU compared to 15 415 in the US)14. This 
means  EU  funds  are  on  average  significantly  smaller.  This  has  a  negative  impact  on 
economies  of  scale,  the  fees  paid  by  investors,  and  the  way  in  which  the  internal  market 
operates for investment funds. 

This  proposal  also  recognises  that  there  are  also  other  factors  outside  its  scope  which  are 
holding  back  the  cross-border  distribution  of  investment  funds  in  the  EU.  These  factors 
include national tax regimes applicable to investment funds and investors, vertical distribution 
channels and cultural preferences for domestic investment products. 

• 

Consistency with existing policy provisions in the policy area 

This  proposal  is  presented  together  with  a  Directive  amending  Directive  2009/65/EC  and 
Directive 2011/61/EU with regard to cross-border distribution of collective investment funds. 
It  focuses  solely  on  cross-border  distribution  of  investment  funds.  It  introduces  new  or 
amends existing elements of the relevant legislation. These new elements or amendments are 
consistent  with  objectives  of  the  existing  policy provisions  in  the  policy  area,  which  aim  to 
establish  a  single  market  for  investment  funds  and  facilitate  the  cross-border  distribution  of 

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Regulation  (EU)  No  345/2013  of  the  European  Parliament  and  of  the  Council  of  17  April  2013  on 
European venture capital funds (OJ L 115, 25.4.2013, p. 1). 
Regulation  (EU)  No  346/2013  of  the  European  Parliament  and  of  the  Council  of  17  April  2013  on 
European social entrepreneurship funds (OJ L 115, 25.4.2013, p. 18). 
Regulation (EU) 2015/760 of the European Parliament and of the Council of 29 April 2015 on European 
long-term investment funds (OJ L 123, 19.5.2015, p. 98-121). 
Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money 
market funds (OJ L 169, 30.6.2017, p. 8). 
EFAMA, Quarterly Statistical Release Q2 2017. 
EFAMA Fact Book 2017 and Investment Company Institute (ICI) Fact Book 2017. 

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investment funds. The proposal also aligns the rules for different types of investment funds. 
Hence, consistency with existing policy provisions is safeguarded. 

• 

Consistency with other Union policies 

The Commission’s top priority is to strengthen the EU economy and stimulate investment to 
create jobs. A key element of the Investment Plan for Europe15, which aims to strengthen 
Europe’s  economy  and  encourage  investment  in  all  28  Member  States,  is  creating  a  deeper 
single  market  for  capital  –  a  CMU.  Deeper  and  integrated capital  markets  will  improve  the 
access  to  capital  for  companies  while  aiding  in  the  development  of  new  investment 
opportunities for savers. 

This  proposal  is  complementary  to  this  objective  and  a  priority  action  in  the  CMU  mid-
term review16, as it contains measures to remove capital market barriers. It contributes to the 
development  of  more  integrated  capital  markets  by  making  it  easier  for  investors,  fund 
managers and invested undertakings to benefit from the single market. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

This proposal falls within the area of shared competence in accordance with Article 4(2)(a) of 
the Treaty on the Functioning of the European Union (TFEU). 

The  legal  basis  for  action  is  Article  114  TFEU.  The  choice  of  this  legal  base  reflects  the 
crucial role that a harmonised passporting regime plays in the operating of an internal market 
for investment funds. 

It is vital to make it easier for investment funds to provide services and thus to achieve a more 
competitive  and  integrated  internal  market  within  the  Union.  Regulatory  barriers  to  cross-
border distribution currently prevent the internal market for investment funds from operating 
properly.  The  regulatory  barriers  fragment  the  internal  market  and  make  it  difficult  for 
investment  funds  to  fully  benefit  from  the  internal  market.  Therefore,  to  ensure  that  the 
internal market for investment funds operates properly and to improve the conditions in which 
it  operates,  a  regulatory  framework  that  reduces  barriers  to  the  cross-border  distribution  of 
investment funds at Union level is necessary. That is why the proposal aims to harmonise the 
behavioural  requirements  for  investment  funds,  i.e.  marketing  communications  to  potential 
investors, and transparency of the provisions falling outside the fields governed by Directive 
2009/65/EC  and  Directive  2011/61/EU,  thus  allowing  for  the  facilitation  of  a  cross-border 
passport mechanism. 

• 

Subsidiarity (for non-exclusive competence) 

This proposal complies with the principle of subsidiarity as set out in Article 5 of the Treaty 
on European Union (TEU). 

Harmonising EU rules on marketing communications to potential investors and bringing more 
transparency to the provisions falling outside the fields can be conducive to the development 

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http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1507119651257&uri=CELEX:52014DC0903 
Further  initiatives  also  target  the  facilitation  of  cross-border  investments,  e.g.  guidance  on  existing  EU 
standards  for  the  treatment  of  cross-border  EU  investments  and  the  amicable  resolution  of  investment 
disputes. 

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of more integrated capital markets for investment funds throughout the Union. The aim of the 
proposal  is  thus  to  ensure  that  the  internal  market  for  the  services  of  investment  funds 
operates  smoothly.  This  is  not  limited  to  the  territory  of  one  Member  State  and  cannot  be 
achieved by the Member States at  national  level. Also, the proposal creates additional tasks 
for  the  European  Securities  and  Markets  Authority  (ESMA)  established  under  Regulation 
(EU) No 1095/201017 which cannot be achieved by Member States acting individually. 

• 

Proportionality 

This proposal complies with the principle of proportionality as set out in Article 5 TEU. 

The  impact  assessment  contains  initial  estimations  on  cost  savings  based  on  factual  and 
realistic  assumptions.  The  proposal  will  reduce  the  compliance  burden  and  costs  for 
investment funds by increasing transparency. Although the development and maintenance of 
ESMA databases require input from the competent authorities in the Member States (notably 
notifications  to  ESMA),  the  financial  efforts  expected  from  Member  States  will  be  limited. 
The  data  gathered  will  allow  ESMA  to  better  perform  its  convergence  role.  Increased 
competition in the investment funds sector will have a positive effect on the choice available 
to investors and on Member States’ economies. 

• 

Choice of the instrument 

This  proposal  includes  provisions  which  give  investment  funds  more  legal  certainty  to 
provide services. The lack of transparency of regulatory barriers observed in Member States 
would not be solved solely by amending Directive 2009/65/EC and Directive 2011/61/EU, as 
this could give rise to an uneven implementation.  

Moreover, those rules proposed in this Regulation which addressed to ESMA and the national 
authorities,  are  technical  in  nature  and  self-standing.  The  proposal  aims  to  increase 
transparency on the rules and procedures applicable to (cross-border) marketing of investment 
funds  and  regulatory  fees  and  charges  levied  by  national  competent  authorities.  A  directly 
applicable  regulation,  providing  full  harmonisation,  is  necessary  to  achieve  these  policy 
objectives. A regulation is also a suitable legal means to task ESMA to develop and maintain 
databases on national marketing communication rules, applicable fees and charges as well as 
for storing notifications. A Regulation, therefore, should best deliver maximum harmonisation 
avoiding divergences and thus ensuring greater regulatory convergence.  

It  is  also  proposed  to  introduce  limited  changes  to  Regulation  (EU)  No  345/2013  and 
Regulation  (No)  346/2013  to  mirror  an  introduction  of  the  notion  and  conditions  for  pre-
marketing  in  a  separate  directive  proposing  amendments  to  Directive  2011/61/EU. 
Amendments to the Regulations therefore must be introduced by a Regulation. 

In addition, it is proposed to introduce limited changes to Directive 2009/65/EC and Directive 
2011/61/EU with regard to cross-border distribution of collective investment funds. For this 
purpose,  this  proposal  is  presented  together  with  a  Directive  amending  those  Directives 
(which is proposed separately). 

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Regulation  (EU)  No  1095/2010  of  the  European  Parliament  and  of  the  Council  of  24  November  2010 
establishing  a European  Supervisory Authority  (European Securities  and Markets  Authority), amending 
Decision  No  716/2009/EC  and  repealing  Commission  Decision  2009/77/EC  (OJ  L  331,  15.12.2010,  p. 
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3. 

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RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

In preparing this proposal, the Commission has carried out an in-depth evaluation of relevant 
provisions  of  Directive  2009/65/EC  and  Directive  2011/61/EU  and  additional  requirements 
imposed by Member States. 

This  evaluation  showed  that  despite  its  relative  success,  the  single  market  falls  short  of 
realising its full potential for the cross-border distribution of investment funds since the funds 
still face many barriers. In addition, the legal requirements and administrative practices which 
fall outside the harmonisation introduced by Directive 2009/65/EC and Directive 2011/61/EU 
lack  transparency.  The  Commission’s  evaluation  revealed  that  Member  States  take  very 
different  approaches  to  the  requirements  and  verifications  of  marketing  communications. 
There  is  also  a  wide  variation  in  the  fees  and  charges  levied  by  the  national  competent 
authorities  for  supervisory  tasks  in  accordance  with  Directive  2009/65/EC  and  Directive 
2011/61/EU. These are all barriers to a wider cross-border distribution of investment funds. 

• 

Stakeholder consultations 

Responses  to  two  consultations  suggested  that  regulatory  barriers  to  the  cross-border 
distribution  of  investment  funds  prevented  the  full  benefits of  the  single  market  from  being 
realised. The first consultation, the Green Paper on Capital Markets Union, was launched 
on 18 February 2015. The second consultation, the Call for Evidence on the EU regulatory 
framework for financial services, was launched on 30 September 2015.  

Additional information on national practices was sought from competent authorities and 
ESMA. At the Commission’s request, ESMA conducted a survey of competent authorities in 
2016, requesting details about current national practices in areas such as regulatory fees and 
marketing requirements. 

Based  on  the  input  received  from  the  CMU  Green  Paper  and  the  Call  for  Evidence  and 
ESMA’s  survey,  the  Commission  launched  a  public  consultation  on  2  June  2016  on  the 
cross border distribution of investment funds18. Given the feedback already received, the 
consultation sought practical examples of the problems faced and evidence of their impact. To 
receive  a  high  number  of  replies,  the  Commission  organised  roadshows  with  asset 
management associations and their members in the main asset management hubs in the EU, 
i.e.  Luxembourg,  France,  Ireland,  the  UK,  Germany  and  Belgium.  Several  meetings  and 
conference  calls  were  held  with  European  and  national  investor  associations,  and  the 
consultation was presented to the Financial Services User Group on 15 September 2016. In 
total,  64  responses  were  received:  52  from  associations  or  companies,  8  from  public 
authorities  or  international  organisations  and  4  from  individuals.  Most  responses  indicated 
that regulatory barriers were a significant disincentive to cross-border distribution. 

At the Commission’s request and based on the evidence received, ESMA conducted a follow-
up  survey  in  2017  to  obtain  further  information  about  specific  marketing  practices  and 
notification requirements in Member States. 

The  Commission  also  organised  meetings  with  the  investment  fund  industry  and  European 
investor  associations  for  more  information.  A  questionnaire  was  sent  on  30  May  2017  to 

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https://ec.europa.eu/info/publications/consultation-cross-border-distribution-investment-funds_en . 

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eight trade bodies on the various areas covered by the cross-border distribution of investment 
funds. There was a particular focus on quantifying the costs caused by the regulatory barriers 
to cross-border distribution and determining the potential benefits of removing these barriers 
for asset managers and investors. Feedback suggested that the costs due to regulatory barriers 
are substantial: they amount to 1 to 4 % of the overall expenses of an investment fund. Also, a 
targeted  survey  of  60  equally  represented small,  medium-sized  and  large  investment  funds 
based  on  a  randomised  stratified  sampling  procedure  was  conducted  in  October  2017.  The 
survey confirmed the relevance of the regulatory barriers and the need for action at EU level. 

The  Commission  also  consulted  stakeholders  in  June  and  July  2017  through  an  inception 
impact assessment19. The five responses received from asset managers, their associations and 
financial advisors’ associations supported the Commission initiative to reduce the barriers to 
the cross-border distribution of investment funds. 

Collection and use of expertise 

• 
The Commission relied on information and data from Morningstar20, the European Fund and 
Asset  Management  Association  (EFAMA)  and  market  reports  and  studies  by  private 
companies.  Additionally,  academic  literature  was  reviewed,  in  particular  literature  on  the 
impact of cross-border distribution on competition and expected consumer behaviour. 

• 

Impact assessment 

An impact assessment was carried out to prepare this initiative. 

On  1  December  2017,  the  Regulatory  Scrutiny  Board  delivered  a  positive  opinion  with 
recommendations to further improve the draft impact assessment report. The draft report was 
subsequently  modified  to  take  into  account  the  Board’s  comments21.  The  main  changes 
recommended by the Board related to:  

 

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 

factors that affect cross-border distribution not covered by the initiative,  

a description in the baseline of recent initiatives that have an (indirect) impact on the 
cross-border distribution of funds,  

the structure, presentation, assessment and comparison of the options and  

the presentation, documentation and the qualification of the quantitative methods and 
their results.  

The  revised  impact  assessment  report  and  an  executive  summary  of  the  impact  assessment 
report are published with this proposal22. 

The impact assessment report considers a range of policy options. Based on their assessment, 
the policy choices are as follows: 

(a) 

National  marketing  requirements  should  be  more  transparent  at  national  and  EU 
level. In addition, the definition of pre-marketing in Directive 2011/61/EU should be 

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https://ec.europa.eu/info/law/better-regulation/initiatives/ares-2017-3132069_en. 
Morningstar is an investment research and data provider. 
The opinion of the Regulatory Scrutiny Board SEC(2018)129 final. 
The Impact Assessment report and the Executive summary SWD(2018)54 final and SWD(2018)55 final. 

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harmonised, and the process of checking marketing material should be framed more 
clearly. 

Regulatory  fees  should  be  more  transparent  at  EU  level,  and  high-level  principles 
should  be  introduced  to  ensure  more  consistency  in  the  way  regulatory  fees  are 
determined. 

The  choice  of  facilities  to  support  local  investors  should  be  left  to  managers  of 
investment funds, with safeguards for investors. 

The procedures and requirements for updating notifications and de-notification of the 
use of the marketing passport should be harmonised more. 

(b) 

(c) 

(d) 

Together,  the  policy  choices  significantly  reduce  regulatory  barriers.  They  increase  the 
potential  to  have  more  funds  marketed  cross-border,  improve  competition,  lower  market 
fragmentation and give investors more choice in the EU. The policy choices also have indirect 
benefits  because  of  their  social  and  environmental  impact.  More  cross-border  distribution 
should  lead  to  more  opportunities  to  invest  in  investment  funds  pursuing  social  or 
environmental goals. This in turn could accelerate growth in these areas. 

For  all  investment  funds  currently  marketed  on  a  cross-border  basis  in  the  EU,  the  policy 
choices together are expected to save an annual EUR 306 to 440 million in  costs (recurrent 
costs). The savings in one-off costs is expected to be even higher: EUR 378 to 467 million. 
These  cost  reductions  should  act  as  incentives  to  develop  more  cross-border  activities  and 
support a more integrated single market for investment funds. 

This  Regulation  covers  policy  choices  (a)  and  (b).  The  Directive  amending  Directive 
2009/65/EC and Directive 2011/61/EU which is proposed separately covers policy choices (c) 
and (d). 

• 

Regulatory fitness and simplification 

This proposal should lead to significant cost reductions for managers of investment funds that 
distribute,  or  intend  to  distribute,  their  funds  cross-border  in  the  EU.  These  cost  reductions 
will  in  particular  have  a  positive  effect  on  managers  of  funds  who  either  manage  a  smaller 
number  of  investment  funds  or  investment  funds  with  less  significant  assets  under 
management, since they have a smaller base over which they can spread the costs. 

Although this proposal does not directly target small and medium sized enterprises (SMEs), 
the  SMEs  will  indirectly  benefit  from  this  proposal.  Increased  cross-border  distribution  of 
investment  funds  will  in  fact  accelerate  the  growth  of  EU  investment  funds  and  their 
investments in SMEs, in particular from venture capital funds. 

• 

Fundamental rights 

The EU is  committed to high  standards of protection  of fundamental rights.  In  this context, 
the proposal is  not  likely to  have  a  direct impact on those rights,  as  listed in  the Charter  of 
Fundamental Rights of the European Union. 

4. 

BUDGETARY IMPLICATIONS 

This proposal will have two budgetary implications for ESMA. ESMA will have to:  

 

 

prepare regulatory and implementing technical standards, and  

develop and maintain databases that the public can use for free. 

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The  specific  budgetary  implications  for  ESMA  are  assessed  in  the  financial  statement 
accompanying this proposal. 

Pending  the  recent  review  of  the  European  Supervisory  Authorities,  the  proposal  has 
implications for the Union budget in the form of the Commission’s 40 % share in financing 
ESMA. 

5. 

 

OTHER ELEMENTS 

Evaluation 

An  evaluation  of  this  Regulation  and  the  proposal  for  a  Directive  amending  Directive 
2009/65/EC and 2011/61/EU with regard to cross-border distribution of collective investment 
funds  will  be  conducted  five  years  after  the  entry  into  force  of  this  Regulation.  The 
Commission  will  rely  on  a  public  consultation  and  discussions  with  ESMA  and  competent 
authorities. 

 

Detailed explanation of the specific provisions of the proposal 

Article 1 introduces the definitions. 

Article 2 on requirements on marketing communications contains principles which marketing 
communications  must  fulfil,  namely  (i)  the  communications  are  identifiable  as  such,  (ii) 
present the risks and rewards of purchasing units or shares of AIFs and UCITS in an equally 
prominent  manner  and  (iii)  all  information  included  in  marketing  communications  is  fair, 
clear  and  not  misleading.  It  is  broadly  based  on  Article  77  of  Directive  2009/65/EC  and 
extends the scope of application to Directive 2011/61/EU. 

Articles  3  and  4  introduce  a  transparency  framework  for  national  provisions  on  marketing 
requirements.  The  competent  authorities  will  publish  online  all  applicable  national  laws, 
regulations and administrative provisions governing marketing rules for AIFs and UCITS, and 
their  summaries,  in  at  least  a  language  customary  in  the  sphere  of  international  finance, 
requesting the publication in that language next to the official languages or one of the official 
languages used in a given Member State. ESMA will be notified of this information and will 
publish  and  maintain  on  its  website  a  dedicated  central  database.  To  streamline  the 
information  flows  between  the  competent  authorities  and  ESMA,  Article  3  lays  down  an 
empowerment  for  implementing  technical  standards  to  determine  standard  forms,  templates 
and procedures for the notifications. 

Under  Article  5,  where  competent  authorities  require  systematic  notification  of  marketing 
communications in order to verify compliance of such communications with relevant national 
provisions  on  marketing  requirements,  the  competent  authorities  must  decide  within  10 
working days. The verification may not constitute a prior condition for marketing. Article 5 
also establishes that the competent authorities must apply and publish applicable procedures 
ensuring transparent and non-discriminatory treatment regardless of the origin of the verified 
investment  fund.  The  competent  authorities  each  year  must  inform  ESMA  of  the  decisions 
rejecting  or  requesting  adaptations  to  marketing  communications.  To  ensure  a  coherent 
treatment  of  retail  investors,  these  requirements  should  also  be  applied  by  AIFMs  where 
Member  States  allow  them  to  market  units  or  shares  of  AIFs  to  retail  investors  in  their 
territories. 

Article  6  lays  down  that  where  the  competent  authority  levies  fees  or  charges,  such  fees  or 
charges must be proportionate to supervisory tasks carried out, and the relevant invoices must 
be sent to the registered offices of the AIFMs or UCITS management companies. 

EN 

8 

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Article 7 sets out that the competent authorities have to publish and maintain on their websites 
central  databases  on  the  fees  or  charges  or  relevant  calculation  methodologies.  The 
information  is  to  be  made  available  in  at  least  a  language  customary  in  the  sphere  of 
international  finance.  The  system  provides  for  notifications  by  competent  authorities  of  the 
relevant information. To streamline the information flows between the competent authorities 
and  ESMA,  ESMA  must  develop  implementing  technical  standards  to  determine  standard 
forms, templates and procedures for the notifications. 

Article  8  entrusts  ESMA  with  the  task  of  publishing  and  maintaining  online  an  interactive 
central  database  with  the  fees  or  charges  charged  by  the  competent  authorities,  or,  where 
applicable, with the calculation methodologies used. 

Article 9, as part of the interactive central database introduced by Article 8, provides for an 
interactive tool on fees and charges that allows the user to perform online calculations. 

Article 10 introduces a requirement on ESMA to publish and maintain on its website a central 
database  on  all  AIFMs,  UCITS  management  companies,  AIFs  and  UCITS.  This  database 
builds  on  information  received  by  ESMA  in  accordance  with  Article  6(1)  of  Directive 
2009/65/EC  and  Article  7(5)  of  Directive  2011/61/EU  and  notifications  and  notification 
letters received by the competent authorities under those Directives, as notified to ESMA in 
accordance with Article 11(1) of this Regulation. 

Under  Article  11  the  competent  authorities  are  required  to  transmit  notifications  and 
notification  letters  referred  to  in  Article  10  to  ESMA.  To  standardise  and  streamline  the 
information  flows  between  investment  funds/AIFMs  or  UCITS  management  companies  and 
the  competent  authorities  and  the  competent  authorities  and  ESMA,  this  Article  also  lays 
down an empowerment for regulatory and implementing technical standards. 

Articles 12 and 13 introduce the concept of pre-marketing in Regulation (EU) No 345/2013 
and  Regulation  (EU)  No  346/2013.  The  change  would  allow  managers  registered  in 
accordance with those Regulations to target investors by testing their appetite for upcoming 
investment  opportunities  or  strategies  through  pre-marketing.  This  change  would  warrant  a 
level  playing  field  with  managers  authorised  under  Article  6  of  Directive  2011/61/EU 
benefiting  from  that  concept  introduced  by  [reference  a  Directive  amending  Directive 
2009/65/EC and Directive 2011/61/EU with regard to cross-border distribution of collective 
investment funds]. 

Article  14  lays  down  60  months  after  the  date  for  entry  into  force  of  this  Regulation  the 
Commission shall carry out an evaluation of this Regulation. 

EN 

9 

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2018/0045 (COD) 

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 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 114 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 

Having regard to the opinion of the European Central Bank, 
Having regard to the opinion of the European Economic and Social Committee,23 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

Divergent  regulatory  and  supervisory  approaches  concerning  the  cross-border 
distribution  of  alternative  investment  funds  (‘AIFs’),  as  defined  in  Article 4(1)(a)  of 
Directive  2011/61/EU  of  the  European  Parliament  and  of  the  Council24,  and 
undertakings for collective investment in transferable securities (‘UCITS’), within the 
meaning  of  Directive  2009/65/EC  of  the  European  Parliament  and  of  the  Council25, 
result  in fragmentation and barriers to cross-border marketing and access of AIFs and 
UCITS,  which  in  turn  could  prevent  them  from  being  marketed  in  other  Member 
States. 

In  order  to  enhance  the  regulatory  framework  applicable  to  investment  funds  and  to 
better  protect  investors,  marketing  communications  to  investors  in  AIFs  and  UCITS 
should  be  identifiable  as  such,  and  should  present  risks  and  rewards  of  purchasing 
units or shares of an AIF or  UCITS in an equally prominent manner. In addition, all 
information  included  in  marketing  communications  should  be  presented  in  a  manner 
that is fair, clear and not misleading. To safeguard investors’ protection and secure a 
level  playing  field  between  AIFs  and  UCITS,  the  standards  for  marketing 

23 
24 

25 

OJ C , , p. . 
Directive  2011/61/EU  of  the  European  Parliament  and  of  the  Council  of  8 June  2011  on  Alternative 
Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) 
No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1). 
Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination 
of  laws,  regulations  and  administrative  provisions  relating  to  undertakings  for  collective  investment  in 
transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32). 

EN 

10 

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communications  should  therefore  equally  apply  to  marketing  communications  for 
AIFs and UCITS. 

Competent  authorities  that  decide  to  require  systematic  notification  of  marketing 
communications  should  verify  compliance  of  those  communications  with  this 
Regulation  and  other  applicable  requirements,  namely  whether  the  marketing 
communications  are  identifiable  as  such,  whether  they  present  risks  and  rewards  of 
purchasing units or shares of a UCITS and, where a Member State allows marketing of 
AIFs  to  retail  investors,  of  an  AIF  in  an  equally  prominent  manner  and  whether  all 
information  in  marketing  communications  is presented  in  a manner that  is  fair,  clear 
and not misleading. 

To enhance transparency and investor protection, access to information on marketing 
requirements  for  shares  or  units  of  AIFs  or  UCITS  enshrined  in  national  laws, 
regulations and administrative provisions should be improved by requiring competent 
authorities and the European Securities and Markets Authority (‘ESMA’) to maintain 
central  databases  on  their  websites  in  at  least  a  language  customary  in  the  sphere  of 
international finance. 

To ensure equality in treatment and facilitate decision-making of AIFMs and UCITS 
management companies whether to engage in cross border distribution of investment 
funds,  it  is  important  that  fees  and  charges  levied  by  competent  authorities  for  the 
authorisation,  registration  and  supervision  referred  to  in  Directives  2009/65/EC  and 
2011/61/EU  are  proportionate  to  the  supervisory  tasks  carried  out  and  publicly 
disclosed,  and  that  those  fees  and  charges  are  published  on  their  websites.  For  the 
same  reason,  the  ESMA  website  should  include  an  interactive  tool  enabling 
calculations of fees and charges levied by competent authorities 

Since  ESMA,  in  accordance  with  Regulation  (EU)  No  1095/2010  of  the  European 
Parliament  and  of  the  Council26,  should  monitor  and  assess  market  developments  in 
the area of its competence, it is appropriate and necessary to enhance the knowledge of 
ESMA  by  enlarging  ESMA’s  currently  existing  databases  to  include  all  AIFMs  and 
UCITS  management  companies  and  all  AIFs  and  UCITS  which  those  management 
companies  manage  and  market,  as  well  as  all  the  Member  States  in  which  those 
investment  funds  are  marketed.  For  that  purpose,  competent  authorities  should 
transmit  to  ESMA  notifications,  notification  letters  or  written  notices  that  they 
received under Directives 2009/65/EC and 2011/61/EU.  

In  order  to  secure  a  level  playing  field  between  qualifying  venture  capital  funds  as 
defined  in  Article 3(b)  of  Regulation  (EU)  No  345/2013  of  the  European  Parliament 
and  of  the  Council27,  or  qualifying  social  entrepreneurship  funds  as  defined  in 
Article 3(b)  of Regulation  (EU)  No  346/2013  of the European Parliament and of the 
Council,28  on  the  one  hand,  and  other  AIFs,  on  the  other  hand,  it  is  necessary  to 
include  into  those  Regulations  rules  on  pre-marketing  that  are  identical  to  the  rules 
laid  down  in  Directive  2011/61/EU  on  pre-marketing.  Those  rules  should  enable 

Regulation  (EU)  No  1095/2010  of  the  European  Parliament  and  of  the  Council  of  24 November  2010 
establishing  a European  Supervisory Authority  (European Securities  and Markets  Authority), amending 
Decision  No 716/2009/EC  and  repealing  Commission  Decision  2009/77/EC  (OJ  L  331,  15.12.2010, 
p. 84). 
Regulation  (EU)  No 345/2013  of  the  European  Parliament  and  of  the  Council  of  17 April  2013  on 
European venture capital funds (OJ L 115, 25.4.2013, p. 1). 
Regulation  (EU)  No 346/2013  of  the  European  Parliament  and  of  the  Council  of  17 April  2013  on 
European social entrepreneurship funds (OJ L 115, 25.4.2013, p. 18). 

(3) 

(4) 

(5) 

(6) 

(7) 

26 

27 

28 

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(8) 

(9) 

managers registered in accordance with those Regulations to target investors by testing 
their  appetite  for  upcoming  investment  opportunities  or  strategies  through  qualifying 
venture capital funds and qualifying social entrepreneurship funds. 

The Commission should be empowered to adopt draft regulatory technical standards, 
developed  by  ESMA,  with  regard  to  the  specification  of  information  on  fees  or 
charges  or,  where  applicable,  relevant  calculation  methodologies  for  those  fees  or 
charges, levied by the competent authorities. Furthermore, the Commission should be 
empowered  to  adopt  draft  regulatory  technical  standards,  developed  by  ESMA,  with 
regard  to  the  specification  of  information  to  be  notified  in  notifications,  notification 
letters  and  written  notices  on  cross-border  activities  that  are  required  by  Directives 
2009/65/EC  and  2011/61/EU.  The  Commission  should  adopt  those  draft  regulatory 
technical  standards  by means of delegated acts pursuant  to Article 290 TFEU  and  in 
accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. 

The  Commission  should  be  empowered  to  adopt  implementing  technical  standards, 
developed by ESMA, with regard to the standard forms, templates and procedures for 
notifications  by  competent  authorities  of  the  laws,  regulations  and  administrative 
provisions  and  their  summaries  on  marketing  requirements  applicable  in  their 
territories, the levels of fees or charges levied by them, and, where applicable, relevant 
calculation methodologies. Furthermore, to improve the transmission of information to 
competent  authorities  and  among  competent  authorities  and  ESMA,  implementing 
technical  standards  should  cover notifications, notification letters and written  notices 
on cross-border activities that are required by Directives 2009/65/EC and 2011/61/EU. 
The  Commission  should  adopt  those  implementing  technical  standards  by  means  of 
implementing acts pursuant to Article 291 TFEU and in accordance with Article 15 of 
Regulation (EU) No 1095/2010. 

(10) 

It  is  necessary  to  coordinate  the  empowerments  granted  to  the  Commission  to  adopt 
draft  regulatory  technical  standards  and  implementing  technical  standards,  as 
developed by ESMA, in the area of notifications, notification letters or written notices 
on cross-border activities under this Regulation and under Directives 2009/65/EC and 
2011/61/EU.  [Directive  amending  Directive  2009/65/EC  and  Directive  2011/61/EU 
with  regard  to  cross-border  distribution  of  collective  investment  funds]  should 
therefore delete those empowerments from Directives 2009/65/EC and 2011/61/EU. 

(11)  Any processing of personal data carried out within the framework of this Regulation, 
such  as  the  exchange  or  transmission  of  personal  data  by  the  competent  authorities, 
should be undertaken in accordance with Regulation (EU) 2016/679 of the European 
Parliament and of the Council29, and any exchange or transmission of information by 
ESMA should be undertaken in accordance with Regulation (EC) No 45/2001 of the 
European Parliament and of the Council30. 

(12)  Five  years  after  the  entry  into  force  of  this  Regulation,  the  Commission  should 
conduct an evaluation of the application of this Regulation. The evaluation should take 

29 

30 

Regulation  (EU)  2016/679  of  the  European  Parliament  and  of  the  Council  of  27  April  2016  on  the 
protection of natural persons with regard to the processing of personal data and on the free movement of 
such data, and repealing Directive 95/46/EC (OJ L 119, 4.5.2016, p. 1). 
Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the 
protection of individuals with regard to the processing of personal data by the Community institutions and 
bodies and on the free movement of such data (OJ L 8, 12.1.2001, p. 1). 

EN 

12 

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account  of  market  developments  and  assess  whether  the  measures  introduced  have 
improved the cross-border distribution of investment funds.  

(13) 

In order to ensure legal certainty, it is necessary to synchronise the application dates of 
laws,  regulations  and  administrative  provisions  implementing  [Directive  amending 
Directive  2009/65/EC  and  Directive  2011/61/EU  with  regard  to  cross-border 
distribution  of  collective  investment  funds]  and  of  this  Regulation  with  regard  to 
provisions on marketing communications and pre-marketing. 

(14)  Since  the  objectives  of  this  Regulation,  namely  to  enhance  market  efficiency  while 
establishing  the  Capital  Markets  Union,  cannot  be  sufficiently  achieved  by  the 
Member States  but  can  rather,  by  reason  of  its  effects,  be  better  achieved  at  Union 
level, the Union may adopt measures in accordance with the principle of subsidiarity 
as  set  out  in  Article 5  of  the  Treaty  on  European  Union.  In  accordance  with  the 
principle  of  proportionality  as  set  out  in  that  Article,  this  Regulation  does  not  go 
beyond what is necessary in order to achieve those objectives, 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Definitions 

For the purposes of this Regulation, the following definitions apply: 

(a) 

‘AIF’ means an AIF as defined in Article 4(1)(a) of Directive 2011/61/EU; 

(b) 

‘AIFM’ means an AIFM as defined in Article 4(1)(b) of Directive 2011/61/EU; 

(c) 

(d) 

(e) 

(f) 

1. 

2. 

‘competent  authority’  means  a  competent  authority  as  defined  in  Article  2(1)(h)  of 
Directive 2009/65/EC or a competent authority as defined in Article 4(1)(f) of Directive 
2011/61/EU or Article 4(1)(h) of Directive 2011/61/EU; 

‘home  Member  State’  means  the  Member  State  in  which  the  AIFM  or  the  UCITS 
management company has its registered office; 

‘UCITS’  means  a  UCITS  authorised  in  accordance  with  Article  5  of  Directive 
2009/65/EC; 

‘UCITS  management  company’  means  a  management  company  as  defined  in 
Article 2(1)(b) of Directive 2009/65/EC. 

Article 2 

Requirements for marketing communications 

AIFMs  or  UCITS  management  companies  shall  ensure  that  all  marketing 
communications to investors shall be identifiable as such, present risks and rewards 
of  purchasing  units  or  shares  of  an  AIF  or  of  an  UCITS  in  an  equally  prominent 
manner and that all information included in marketing communications is fair, clear 
and not misleading. 

UCITS  management  companies  shall  ensure  that  no  marketing  communication  that 
contains  specific  information  about  a  UCITS  contradicts  the  information,  or 
diminishes  its  significance,  contained  in  the  prospectus  referred  to  in  Article  68  of 
Directive  2009/65/EC  and  the  key  investor  information  referred  to  in  Article  78  of 
that  Directive.  UCITS  management  companies  shall  ensure  that  all  marketing 
communications  indicate  that  a  prospectus  exists  and  that  the  key  investor 

EN 

13 

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information is available. The marketing communication shall specify where, how and 
in which language investors or potential investors can obtain the prospectus and the 
key investor information. 

AIFMs  shall  ensure  that  no  marketing  communication  comprising  an  invitation  to 
purchase  units  or  shares  of  an  AIF  that  contains  specific  information  about  an  AIF 
makes any statement that contradicts the information that needs to be disclosed to the 
investors  in  accordance  with  Article  23  of  Directive  2011/61/EU,  or  diminishes  its 
significance. 

Paragraph  2  of  this  Article  shall  apply  mutatis  mutandis  to  AIFs  which  publish  a 
prospectus in accordance with Regulation 2017/1129 of the European Parliament and 
the Council,31 or in accordance with national law, or apply rules on the format and 
content  of  the  key  investor  information  referred  to  in  Article  78  of  Directive 
2009/65/EC. 

By [PO: Please insert date 24 months after the date of entry into force] ESMA shall 
issue  guidelines,  and  thereafter  update  those  guidelines  periodically,  on  the 
application of the requirements for marketing communications referred to in the first 
paragraph, taking into account on-line aspects of marketing communications. 

Article 3 

Publication of national provisions concerning marketing requirements 

Competent authorities shall publish and maintain on their websites central databases 
containing  all  applicable  national  laws,  regulations  and  administrative  provisions 
governing marketing requirements for AIFs and UCITS, and the summaries thereof, 
in at least a language customary in the sphere of international finance. 

Competent authorities shall notify to ESMA the laws, regulations and administrative 
provisions, and the summaries thereof, referred to in paragraph 1 and the hyperlinks 
to the websites of competent authorities where that information is published. 

Competent authorities shall notify to ESMA any change in the information provided 
under the first subparagraph of this paragraph without delay. 

ESMA  shall  develop  draft  implementing  technical  standards  to  determine  standard 
forms, templates and procedures for the notifications under this Article. 

ESMA shall submit those draft implementing standards to the Commission by [PO: 
Please insert date 18 months after the date of entry into force]. 

Power is conferred on the Commission to adopt the implementing technical standards 
referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) 
No 1095/2010. 

By [PO: Please insert date 48 months after the date of entry into force] ESMA shall 
examine in a report the marketing requirements referred to in paragraph 1 and inform 
the Commission thereof. ESMA shall update that report every two years. 

Regulation  (EU)  2017/1129  of  the  European  Parliament  and  of  the  Council  of  14  June  2017  on  the 
prospectus to be published when securities are offered to the public or admitted to trading on a regulated 
market, and repealing Directive 2003/71/EC (OJ L 168, 30.6.2017, p. 12). 

3. 

4. 

5. 

1. 

2. 

3. 

4. 

31 

EN 

14 

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Article 4 

ESMA central database on national provisions concerning marketing requirements 

By [PO: Please insert date 30 months after the date of entry into force], ESMA shall publish 
and  maintain  on  its  website  a central  database containing  the  national laws,  regulations  and 
administrative provisions concerning marketing requirements, and the summaries thereof, and 
the hyperlinks to the websites of competent authorities. 

1. 

2. 

3. 

4. 

Article 5 

Verification of marketing communications 

For the sole purpose of verifying compliance with this Regulation and with national 
provisions  concerning  marketing  requirements,  competent  authorities  may  require 
systematic notification of marketing communications which the UCITS management 
companies intend to use directly or indirectly in their dealings with investors. 

The systematic notification referred to in the first subparagraph shall not constitute a 
prior condition for the marketing of units of UCITS. 

Where  competent  authorities  require  notification  of  marketing  communications 
referred to in the first subparagraph, they shall, within 10 working days, starting on 
the  working  day  following  that  of  the  receipt  of  a  notification,  inform  the  UCITS 
management company of any request to amend its marketing communications. 

that 

require 

systematic  notification  of  marketing 
Competent  authorities 
communications shall establish, apply, and publish on their websites, procedures for 
the  systematic  notification  of  marketing  communications.  The  internal  rules  and 
procedures shall ensure transparent and non-discriminatory treatment of all UCITS, 
regardless of the Member States in which the UCITS are authorised. 

Where  Member  States  allow  AIFMs  to  market  to  retail  investors  units  or shares of 
AIFs  in  their  territories,  paragraphs  1  and  2  of  this  Article  shall  apply  mutatis 
mutandis to those AIFMs. 

Competent  authorities 
systematic  notification  of  marketing 
communications as referred to in paragraph 1 shall, by 31 March of each year, report 
to  ESMA  on  the  decisions  taken  in  the  preceding  year  rejecting  or  requesting 
adaptations to marketing communications. 

require 

that 

The report to ESMA shall include the following information: 

(a) 

the  total  number  of  decisions  taken,  clearly  distinguishing  the  most  frequent 
breaches, including the description of the subject matter; 

(b) 

the outcomes of each decision; 

(c)  one concrete example for each of the breaches referred to in point (a). 

By 30 June of each year, ESMA shall submit a report to the Commission analysing 
the  effects  of  national  laws,  regulations  and  administrative  provisions  governing 
marketing communications. 

Article 6 

Common principles concerning fees or charges 

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15 

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1. 

2. 

1. 

2. 

3. 

Fees  or  charges  levied  by  competent  authorities  shall  be  proportionate  to  the 
expenditure  relating  to  the  authorisation  or  registration  and  the  performance  of  the 
supervisory and investigatory powers pursuant to Articles 44, 45 and 46 of Directive 
2011/61/EU and Articles 97 and 98 of Directive 2009/65/EC. 

Competent  authorities  shall  send  an  invoice  for  the  given  financial  year  to  the 
registered  office  of  the  AIFM  or  UCITS  management  company.  The  invoice  shall 
indicate the fees or charges referred to in paragraph 1, the means of payment and the 
date when payment is due. 

Article 7 

Publication of national provisions concerning fees and charges 

By  [PO:  Please  insert  date  6  months  after  the  date  of  entry  into  force],  competent 
authorities shall publish and maintain on their websites central databases listing the 
fees  or  charges  referred  to  in  Article 6(1),  or,  where  applicable,  the  calculation 
methodologies  for  those  fees  or  charges,  in  at  least  a  language  customary  in  the 
sphere of international finance. 

Competent authorities shall notify to ESMA the levels of fees or charges referred to 
in Article 6(1), and where applicable, the calculation methodologies for those fees or 
charges. 

Competent authorities shall notify to ESMA any change in the information provided 
under the first subparagraph without delay. 

ESMA shall develop draft regulatory technical standards to specify the information 
to be notified to ESMA by the competent authorities under this Article. 

ESMA shall submit those draft regulatory technical standards to the Commission by 
[PO: Please insert date 18 months after the date of entry into force]. 

Power  is  delegated  to  the  Commission  to  adopt  the  regulatory  technical  standards 
referred  to  in  the  first  subparagraph  in  accordance  with  Articles  10  to  14  of 
Regulation (EU) No 1095/2010. 

4. 

ESMA  shall  develop  draft  implementing  technical  standards  to  determine  the 
standard forms, templates and procedures for the notifications under this Article. 

ESMA shall submit those draft implementing standards to the Commission by [PO: 
Please insert date 18 months after the date of entry into force]. 

Power is conferred on the Commission to adopt the implementing technical standards 
referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) 
No 1095/2010. 

Article 8 

ESMA interactive database on fees and charges 

By [PO: Please insert date 30 months after the date of entry into force] ESMA shall publish 
and maintain on its website an interactive database, publicly accessible in at least a language 
customary  in  the  sphere  of  international  finance,  listing  the  fees  or  charges  referred  to  in 
Article 6(1), or, where applicable, the calculation methodologies for those fees or charges. 

The interactive database shall contain the hyperlinks to the websites of competent authorities 
referred to in Article 7(1). 

EN 

16 

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Article 9 

ESMA interactive tool on fees and charges 

By [PO: Please insert date 30 months after the date of entry into force] ESMA shall develop, 
make available and maintain on its website an interactive tool publicly accessible in at least a 
language  customary  in  the  sphere  of  international  finance  presenting  the  fees  and  charges 
referred to in Article 6(1). 

The interactive tool shall constitute a part of the interactive database referred to in Article 8. 

Article 10 

ESMA central database on AIFMs, UCITS management companies, AIFs and UCITS 

By [PO: Please insert date 30 months after the date of entry into force] ESMA shall publish 
and maintain on its website a central database, publicly accessible in a language customary in 
the sphere of international finance, listing all AIFMs, UCITS management companies, AIFs 
and UCITS which those AIFMs and UCITS management companies manage and market, as 
well as the Member States in which those funds are marketed. 

1. 

2. 

3. 

Article 11 

Standardisation of notifications to ESMA 

The competent authorities of the home Member States shall transmit to ESMA any 
notification, any notification letter, any written notice or any information referred to 
in paragraphs 3 and 8 of Article 17, paragraphs 2 and 4 of Article 18, paragraphs 3 
and 8 of Article 93 and Article 93a(3) of Directive 2009/65/EC and paragraphs 2 and 
4 of Article 31, paragraphs 3 and 7 of Article 32, Article 32a(3) and paragraphs 2 and 
3 of Article 33 of Directive 2011/61/EU without delay. 

ESMA shall develop draft regulatory technical standards to specify information to be 
notified in accordance with paragraphs 1, 2, 3, 8 and 9 of Article 17, paragraphs 1, 2 
and  4  of  Article  18,  paragraphs 1,  2  and  8  of  Article  93  and  Article  93a(2)  of 
Directive 2009/65/EC and Article 32a(2) and paragraphs 2, 3 and 6 of Article 33 of 
Directive 2011/61/EU.  

ESMA shall submit those draft regulatory technical standards to the Commission by 
[PO: Please insert date 18 months after the date of entry into force]. 

Power  is  delegated  to  the  Commission  to  adopt  the  regulatory  technical  standards 
referred  to  in  the  first  subparagraph  in  accordance  with  Articles  10  to  14  of 
Regulation (EU) No 1095/2010. 

ESMA  shall  develop  draft  implementing  technical  standards  to  specify  the  forms, 
templates  and  procedures  for  the  transmission  of  the  information  referred  to  in 
paragraphs 1,  2,  3,  8  and  9  of  Article  17,  paragraphs 1,  2  and  4  of  Article  18, 
paragraphs 1, 2 and 8 of Article 93 and Article 93a(2) of Directive 2009/65/EC and 
paragraphs 2 and 4 of Article 31, paragraphs 2 and 7 of Article 32, Article 32a(2) and 
paragraphs 2, 3 and 6 of Article 33 of Directive 2011/61/EU, including the procedure 
of transmission  of the information  by the competent authorities for the purposes  of 
paragraph 1.  

ESMA shall submit those draft implementing technical standards to the Commission 
by  [PO:  Please  insert  date  18  months  after  the  date  of  entry  into  force  of  this 
Regulation]. 

EN 

17 

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Power is conferred on the Commission to adopt the implementing technical standards 
referred to in the first subparagraph of this paragraph in accordance with Article 15 
of Regulation (EU) No 1095/2010. 

Amendments to Regulation (EU) No 345/2013 on European venture capital funds 

Article 12 

Regulation (EU) No 345/2013 is amended as follows: 

(1) 

in Article 3, the following point (o) is added: 

‘(o) 
‘pre-marketing’  means  a  direct  or  indirect  provision  of  information  on 
investment  strategies  or  investment  ideas  by  the  manager  of  a  qualifying  venture 
capital  fund,  or  on  its  behalf,  to  potential  investors  domiciled  or  with  a  registered 
office  in  the  Union  in  order  to  test  their  interest  in  a  not  yet  registered  qualifying 
venture capital fund’; 

(2) 

the following Article 4a is inserted: 

‘Article 4a 

1. Managers of qualifying venture capital funds may engage in pre-marketing in the 
Union, excluding where the information presented to potential investors: 

(a) 

(b) 

(c) 

(d) 

relates to established qualifying venture capital funds; 

contains any reference to established qualifying venture capital funds; 

enables investors to commit to acquiring units or shares of particular qualifying 
venture capital funds; 

amounts  to  a  prospectus,  constitutional  documents  of  not  yet  registered 
qualifying  venture  capital  funds,  offering  documents,  subscription  forms  or 
similar documents whether in a draft or a final form allowing investors to take 
an investment decision. 

2.  Competent  authorities  shall  not  require  managers  of  qualifying  venture  capital 
funds to notify their intention to engage in pre-marketing. 

3.  Subscription  by  investors  to  units  or  shares  of  qualifying  venture  capital  funds 
registered following the pre-marketing in accordance with paragraph 1 or to the units 
or shares of qualifying venture capital funds managed and marketed by managers of 
qualifying venture capital funds that engaged in pre-marketing of not yet registered 
qualifying  venture  capital  funds  with  the  similar  features  shall  be  considered  the 
result of marketing. 

4.  Managers  of  qualifying  venture  capital  funds  offering  for  subscription  units  or 
shares of qualifying venture capital funds that were the object of pre-marketing shall 
inform the competent authority in accordance with Article 15.’ 

Amendments to Regulation (EU) No 346/2013 on European social entrepreneurship 
funds 

Article 13 

Regulation (EU) No 346/2013 is amended as follows: 

(1) 

in Article 3, the following point (o) is added: 

EN 

18 

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‘(o) 
‘pre-marketing’  means  a  direct  or  indirect  provision  of  information  on 
investment  strategies  or  investment  ideas  by  the  manager  of  a  qualifying  social 
entrepreneurship  fund,  or  on  its  behalf,  to  potential  investors  domiciled  or  with  a 
registered  office  in  the  Union  in  order  to  test  their  interest  in  a  not  yet  registered 
qualifying social entrepreneurship fund’; 

(2) 

the following Article 4a is inserted: 

‘Article 4a 

1.  Managers  of  qualifying  social  entrepreneurship  funds  may  engage  in  pre-
marketing  in  the  Union,  excluding  where  the  information  presented  to  potential 
investors: 

(a) 

(b) 

(c) 

(d) 

relates to established qualifying social entrepreneurship funds; 

contains any reference to established qualifying social entrepreneurship funds; 

enables investors to commit to acquiring units or shares of particular qualifying 
social entrepreneurship funds; 

amounts  to  a  prospectus,  constitutional  documents  of  not  yet  registered 
qualifying  social  entrepreneurship  funds,  offering  documents,  subscription 
forms  or  similar  documents  whether  in  a  draft  or  a  final  form  allowing 
investors to take an investment decision. 

2.  Competent  authorities  shall  not  require  managers  of  qualifying  social 
entrepreneurship funds to notify their intention to engage in pre-marketing. 

3. Subscription by investors to units or shares of qualifying social entrepreneurship 
funds  registered  following  the  pre-marketing  in  accordance  with  paragraph  1  or  to 
the units or shares of qualifying social entrepreneurship funds managed and marketed 
by  managers  of  qualifying  social  entrepreneurship  funds  that  engaged  in  pre-
marketing  of  not  yet  registered  qualifying  social  entrepreneurship  funds  with  the 
similar features shall be considered the result of marketing. 

4.  Managers  of  qualifying  social  entrepreneurship  funds  offering  for  subscription 
units  or  shares  of  qualifying  social  entrepreneurship  funds  that  were  the  object  of 
pre-marketing shall inform the competent authority in accordance with Article 16.’ 

Article 14 

Evaluation 

By [PO: Please insert date 60 months after the date of entry into force] the Commission shall, 
on  the  basis  of  a  public  consultation  and  in  light  of  discussions  with ESMA  and  competent 
authorities, conduct an evaluation of the application of this Regulation. 

Article 15 

Entry into force 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

It shall apply from [PO: Please insert the twentieth day following that of its publication in the 
Official  Journal  of  the  European  Union],  except  for  paragraphs 1  and  4  of  Article  2, 

EN 

19 

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paragraph 1 and 2 of Article 3, Article 12 and Article 13, which shall apply from [PO: Please 
insert date 24 months after the date of entry into force]. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

20 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1.  Title of the proposal/initiative 

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative 

1.4.  Objective(s) 

1.5.  Grounds for the proposal/initiative 

1.6.  Duration and financial impact 

1.7.  Management mode(s) planned 

2. 

MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

2.2.  Management and control system 

2.3.  Measures to prevent fraud and irregularities 

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected 

3.2.  Estimated impact on expenditure 

3.2.1. Summary of estimated impact on expenditure 

3.2.2. Estimated impact on operational appropriations 

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party contributions 

3.3.  Estimated impact on revenue

EN 

21 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1. 

Title of the proposal/initiative 

Proposal for a Regulation of the European Parliament and of the Council on facilitating cross-
border  distribution  of  collective  investment  funds  and  amending  Regulations  345/2013  and 
346/2013 

1.2. 

Policy area(s) concerned 

Financial stability, financial services and Capital Markets Union 

1.3. 

Nature of the proposal/initiative 

 The proposal/initiative relates to a new action 

  The  proposal/initiative  relates  to  a  new  action  following  a  pilot  project/preparatory 
action32 

 The proposal/initiative relates to the extension of an existing action 

 The proposal/initiative relates to an action redirected towards a new action 

1.4. 

Objective(s) 

1.4.1.  The Commission’s multiannual strategic objective(s) targeted by the proposal/initiative 

General objective 1: A New Boost for Jobs, Growth and Investment 

General objective 2: A Deeper and Fairer Internal Market with a Strengthened Industrial Base 

1.4.2. 

Specific objective(s) 

1.6 An increased cross-border investment flow. 

2.4 Consumers have  access  to  safe and reliable insurance, pension and UCITS products  and 
services, both nationally and across borders. 

ABM/ABB activity(ies) concerned 

12. Financial services and capital markets 

32 

As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 

EN 

22 

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1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

Reducing  the  regulatory  barriers  to  cross-border  distribution  of  investment  funds  should 
reduce  the  costs  for  asset  managers  for  going  cross-border,  thus  accelerating  the  growth  of 
cross-border distribution of investment funds and supporting deepening the single market for 
EU investment funds. 

This, in turn, should reduce market fragmentation, increase competition, and ultimately help to 
deliver greater choice and better value for investors in the EU. 

1.4.4. 

Indicators of results and impacts 

By end 2019, the Commission will establish a detailed programme for monitoring the outputs, 
results  and  impacts  of  this  proposal.  The  monitoring  programme  will  set  out  the  means  by 
which  and  the  intervals  at  which  the  data  and  other  necessary  evidence  will  be  collected.  It 
will specify the action to be taken by the Commission, by the Member States and ESMA in 
collecting and analysing the data and other evidence. 

For monitoring and preparing an evaluation of the impact of this proposal, the following non-
exhaustive list of sources could provide for a basis for information gathering: 

(a)  Websites  of  competent  authorities  regarding  national  marketing  requirements  and 
regulatory fees and charges, 

(b)  ESMA database regarding national marketing requirements, 

(c)  ESMA database regarding regulatory fees and charges, 

(d)  ESMA interactive tool on regulatory fees and charges, 

(e)  ESMA database for notifications. 

Whereas  source  (e)  would  allow  the  Commission  to  verify  whether  the  general  policy 
objective has been met, sources (a) to (d) could serve to analyse in how far the specific policy 
objectives have been met. 

The  indicators  for  monitoring  and  evaluation  linked  to  these  sources  would  include  the 
following output: 

creation/update of websites by competent authorities and ESMA (use of sources (a) to 

• 
(c), checks whether information is available on these websites; 

creation  of  an  interactive  database  on  fees  and  charges  by  ESMA  (use  of  source  (d)), 

• 
check whether the database is up and running. 

As to the results and impacts, the analysis should be based on source (e). This source permits 
to identify the number of notifications in total and per Member States, as well as the growth 
rate in total and per Member State. The analysis should take into account the benchmark of the 
current increase of cross-border fund distribution: the average growth of the number of cross-
border funds over the last five years was 6.8 % per year. All other things equal, growth should 
further accelerate thanks to this initiative. The evaluation based on source (e) could be done by 
ESMA once a year and should be submitted to the European Commission, for further use or 
analysis in the framework of its monitoring and evaluation exercise. 

EN 

23 

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1.5. 

Grounds for the proposal/initiative 

1.5.1.  Requirement(s) to be met in the short or long term 

On  the  short  term,  ESMA  is  tasked  with  developing  and  maintaining  databases  on  national 
marketing requirements, regulatory fees and charges and notifications. Furthermore, as part of 
the  database  on  regulatory  fees  and  charges,  ESMA  is  tasked  with  launching  an  interactive 
tool that would allow stakeholders to calculate the amount of regulatory fees for each Member 
State. 

In  addition,  ESMA  will  need  to  develop  regulatory  and  implementing  technical  standards 
within 18 months after the date of entry into force of this initiative.   

1.5.2.  Added value of EU involvement 

Action  at  EU  level  is  necessary  as  the  main  problem  this  initiative  aims  to  address  is  the 
functioning of the internal market for investment funds (more specifically the use of the EU 
marketing passport by investment funds), which is not limited to the territory of one Member 
State  and  cannot  be  achieved  by  Member  States  individually  at  national  level.  Furthermore, 
previous efforts to converge national (supervisory) practices in this area through ESMA have 
not  succeeded  to  address  the  identified  problem.  This  proposal  therefore  gives  the  above 
described  tasks  to  the  ESMA,  which  cannot  be  completed  by  Member  States  acting 
individually. 

1.5.3.  Lessons learned from similar experiences in the past 

ESMA  has  been  charged  with  similar  tasks  already,  such  as  keeping  registers  of  authorised 
managers  exist  for  UCITS,  AIFs,  EuVECA  and  EuSEF.  The  experience  has  been  overall 
positive. 

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

The initiative is in line with the enhanced role ESMA is given in the proposal concerning the 
ESA’s review. It has, however, no direct impact on the Commission’s proposal on the ESA’s 
review since it concerns specific technical issue not addressed in the review. 

EN 

24 

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1.6. 

Duration and financial impact 

 Proposal/initiative of limited duration 

 Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY 

–    Financial impact from YYYY to YYYY 

 Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Management mode(s) planned33 

 Direct management by the Commission through 

–    executive agencies 

 Shared management with the Member States 

 Indirect management by entrusting budget implementation tasks to: 

 international organisations and their agencies (to be specified); 

the EIB and the European Investment Fund; 

 bodies referred to in Articles 208 and 209; 

 public law bodies; 

 bodies governed by private law with a public service mission to the extent that they provide 
adequate financial guarantees; 

  bodies  governed  by  the  private  law  of  a  Member  State  that  are  entrusted  with  the 
implementation of a public-private partnership and that provide adequate financial guarantees; 

  persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP  pursuant  to 
Title V of the TEU, and identified in the relevant basic act. 

Comments 

N/A

33 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the  BudgWeb  site: 
https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx. 

EN 

25 

  EN 

 
                                                 
2. 

MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

Specify frequency and conditions. 

In  line  with  already  existing  arrangements,  ESMA  prepares  regular  reports  on  its  activity 
(including internal reporting to Senior Management, reporting to Boards and the production of 
the  annual  report),  and  undergoes  audits  by  the  Court  of  Auditors  and  the  Internal  Audit 
Service on its use of resources. Monitoring and reporting of the present proposed actions will 
comply with already existing requirements. 

2.2.  Management and control system 

2.2.1.  Risk(s) identified 

In relation to the legal, economic, efficient use of appropriations resulting from the proposal, it 
is  expected  that  the  proposal  would  not  bring  about  new  risks  that  would  not  be  currently 
covered by an ESMA existing internal control framework. 

2.2.2. 

Information concerning the internal control system set up 

Management  and  control  systems  as  provided  for  in  the  ESMA  Regulation  are  already 
implemented.  ESMA  works  closely  together  with  the  Internal  Audit  Service  of  the 
Commission  to  ensure  that  the  appropriate  standards  are  met  in  all  internal  control  areas. 
These arrangements will apply also with regard to the role of ESMA according to the present 
proposal. Annual internal audit reports are sent to the Commission, Parliament and Council. 

2.3.  Measures to prevent fraud and irregularities 

For the purposes of combating fraud, corruption and any other illegal activity, the provisions 
of  Regulation  (EC)  No  883/2013  of  the  European  Parliament  and  of  the  Council  of  11 
September  2013  concerning  investigations  conducted  by  the  European  Anti-Fraud  Office 
(OLAF) applies to ESMA without any restriction. 

ESMA currently has a dedicated anti-fraud strategy and resulting action plan. The strategy and 
action  plan has  been  put  in  place  in  2014.  ESMA’s  strengthened  actions  in  the  area of  anti-
fraud will be compliant to the rules and guidance provided by the Financial Regulation (anti-
fraud measures as part of sound financial management), OLAF’s fraud prevention policies, the 
provisions provided by the Commission Anti-Fraud Strategy (COM(2011)376) as well as set 
out  by  the  Common  Approach  on  EU  decentralised  agencies  (July  2012)  and  the  related 
roadmap. 

The Regulation establishing ESMA sets out the provisions on implementation and control of 
the ESMA budget and applicable financial rules. 

EN 

26 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected 

  Existing budget lines 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Heading of 
multiannual 
financial 
framework 

1a: Competitiveness for growth and jobs  

Type of  
expenditure 

Diff./Non-
34 
diff.

Contribution  

from 
EFTA 
countries
35 

from 
candidate 
36
countries

from third 
countries 

within the meaning 
of Article 21(2)(b) 
of the Financial 
Regulation  

1.a 

12 02 06 ESMA  

Diff.. 

NO 

NO 

NO 

NO 

  New budget lines requested 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Number  
[Heading……………………………………
…] 

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the meaning 
of Article 21(2)(b) 
of the Financial 
Regulation  

Heading of 
multiannual 
financial 
framework 

[…] 

[XX.YY.YY.YY] 

[…] 

[…] 

YES/N
O 

YES/N
O 

YES/N
O 

YES/NO 

34 
35 
36 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association. . 
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

EN 

27 

  EN 

 
 
                                                 
3.2. 

Estimated impact on expenditure37 

3.2.1. 

Summary of estimated impact on expenditure 

Heading of multiannual financial  
framework  

1a 

Competitiveness for growth and jobs  

EUR million (to three decimal places) 

ESMA 

Year 
N38 

Year 
N+139 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the 
duration of the impact (see 
point 1.6) 

Title 1: 

Title 2: 

Title 3: 

TOTAL appropriations 
for ESMA 

Commitments 

(1) 

0 441 

0 191 

Payments 

(2) 

0 441 

0 191 

Commitments 

Payments 

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

(3a) 

(3b) 

=1+1a 

+3a 

=2+2a 

+3b 

0 441 

0 191 

0 441 

0 191 

TOTAL 

Due to ESAs co-
financing 
arrangement 60/40, 
only 40 % of 
estimated costs are 
mentioned here. 

37 
38 
39 

See Annex for additional details. 
Year N is the year in which implementation of the proposal/initiative starts. 
The  expenditure  for  the period of 2021-N is given only  for  illustrative purposes.  The  financial  impact  on  the  European  Budget  post 2020  will  be  part  of  the 
Commission proposals for the next Multiannual Financial Framework. 

EN 

28 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Heading of multiannual financial  
framework  

5 

‘Administrative expenditure’ 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6)  

TOTAL 

EUR million (to three decimal places) 

DG FISMA 

 Human resources 
 Other administrative expenditure  

TOTAL DG FISMA 

Appropriations  

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

Year 
N40 

Year 
N+141 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

EUR million (to three decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 5 

Commitments 

0 441 

0 191 

40 
41 

Year N is the year in which implementation of the proposal/initiative starts. 
The  expenditure  for  the period of 2021-N is given only  for  illustrative purposes.  The  financial  impact  on  the  European  Budget  post  2020  will  be  part  of  the 
Commission proposals for the next Multiannual Financial Framework. 

EN 

29 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
of the multiannual financial framework  

Payments 

0 441 

0 191 

EN 

30 

EN 

 
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated impact on ESMA’s appropriations 

–    The proposal/initiative does not require the use of operational appropriations 

–    The proposal/initiative requires the use of operational appropriations, as explained below: 

Commitment appropriations in EUR million (to three decimal places) 

Indicate 
objectives and 
outputs 

 

Year 
N 

Year 
42
N+1

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

OUTPUTS 

43

Type

Average 
cost 

o
N

Cost  N

o

Cost  N

o

Cost  N

o

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost 

Total No 

Total cost 

SPECIFIC OBJECTIVE No 1.6 and 

44

2.4

- Database on 
regulatory 
fees/charges 

- Database on 
notifications  

- Output 

Subtotal for specific objective No 1 

0 200 

0 040 

0 100 

0 020 

Due to ESAs co-financing 
arrangement 60/40, only 
40 % of estimated costs are 
mentioned here. 

42 

43 
44 

The expenditure for the period of 2021-N is given only for illustrative purposes. The financial impact on the European Budget post 2020 will be part of the Commission 
proposals for the next Multiannual Financial Framework. 
Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in point 1.4.2. ‘Specific objective(s)…’. 

EN 

31 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTAL COST 

0 300 

0 060 

EN 

32 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.  Estimated impact on ESMA’s human resources 

3.2.3.1.  Summary 

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature 

–    The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Year 
N45  

Year 
N+146 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

TOTAL 

Due to 
ESAs co-
financing 
arrangeme
nt 60/40, 
only 40 % 
of 
estimated 
costs are 
mentioned 
here.     

Officials (AD Grades) 

0 141    
 (2 staff 
including 
recruitment 
costs) 

0 131     
(2 staff) 

Officials 
grades) 

(AST 

Contract staff 

Temporary staff  

Seconded National 
Experts 

TOTAL 

0 141    
 (2 staff 
including 
recruitment 
costs) 

0 131    
(2 staff) 

Estimated impact on the staff (additional FTE) — establishment plan 

Function group and grade 

Year N 

Year N+1 

Year N+2 

Enter as many years as necessary 
to show the duration of the impact 
(see point 1.6) 

45 
46 

Year N is the year in which implementation of the proposal/initiative starts. 
The expenditure for the period of 2021-N is given only for illustrative purposes. The financial impact on 
the  European  Budget  post  2020  will  be  part  of  the  Commission  proposals  for  the  next  Multiannual 
Financial Framework. 

EN 

33 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
AD16 

AD15 

AD14 

AD13 

AD12 

AD11 

AD10 

AD9 

AD8 

AD7 

AD6 

AD5 

AD Total 

AST11 

AST10 

AST9 

AST8 

AST7 

AST6 

AST5 

AST4 

AST3 

AST2 

AST1 

0 141     
(2 staff 
including 
recruitment 
costs) 

0 131     
(2 staff) 

EN 

34 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AST Total 

AST/SC 6 

AST/SC 5 

AST/SC 4 

AST/SC 3 

AST/SC 2 

AST/SC 1 

AST/SC Total 

0 141     
(2 staff 
including 
recruitment 
costs) 

0 131     
(2 staff) 

GRAND TOTAL 

Estimated impact on the staff (additional) — external personnel 

Contract agents 

Year N 

Year N+1 

Year N+2 

Enter as many years as necessary 
to show the duration of the impact 
(see point 1.6) 

Function group IV 

Function group III 

Function group II 

Function group I 

Total 

Seconded National Experts 

Year N 

Year N+1 

Year N+2 

Enter as many years as necessary 
to show the duration of the impact 
(see point 1.6) 

Total 

EN 

35 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.2.  Estimated requirements of human resources for the parent DG 

–    The proposal/initiative does not require the use of human resources. 

–    The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the 
duration of the impact (see 
point 1.6) 

 Establishment plan posts (officials and 

temporary staff) 

XX 01 01 01 (Headquarters and 
Commission’s Representation 
Offices) 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

 External staff (in Full Time Equivalent 
unit: FTE)47 

XX 01 02 01 (AC, END, INT from 
the ‘global envelope’) 

XX 01 02 02 (AC, AL, END, INT 
and JED in the Delegations) 

XX 01 04 
yy48 

- at 
Headquarters49 

- in 
Delegations  

XX 01 05 02 (AC, END, INT — 
Indirect research) 

10 01 05 02 (AC, END, INT — 
Direct research) 

Other budget lines (specify) 

TOTAL 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to 
management of the action and/or have been redeployed within the DG, together if necessary 

47 

48 
49 

AC = Contract Staff; AL = Local Staff; END = Seconded National Expert; INT = agency staff; JED = 
Junior Experts in Delegations. . 
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 
Mainly for the Structural Funds, the European Agricultural Fund for Rural Development (EAFRD) and 
the European Fisheries Fund (EFF). 

EN 

36 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
with any additional allocation which may be granted to the managing DG under the annual 
allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

Officials and temporary staff 

External staff 

Description  of  the  calculation  of  cost  for  FTE  units  should  be  included  in  the  Annex  V, 
section 3. 

EN 

37 

  EN 

 
 
 
 
3.2.4.  Compatibility with the current multiannual financial framework 

–    The proposal/initiative is compatible the current multiannual financial framework. 

–    The  proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

multiannual financial framework. 

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding amounts. 

[…] 

–    The  proposal/initiative  requires  application  of  the  flexibility  instrument  or  revision  of 

the multiannual financial framework.50 

Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts. 

[…] 

3.2.5.  Third-party contributions 

–  The proposal/initiative does not provide for co-financing by third parties. 

–  The proposal/initiative provides for the co-financing estimated below: 

EUR million (to three decimal places) 

Year 
N 

Year 
N+151 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the 
duration of the impact (see 
point 1.6) 

Total 

Specify  the  co-financing 
body  

0 662 

0 287 

TOTAL 
co-financed  

appropriations 

0 662 

0 287 

60 % of 
estimated costs 
are mentioned 
here due to ESAs 
cofinancing 
arranegemetns 

50 

51 

See Articles 11 and 17 of Council Regulation (EU, Euratom) No 1311/2013 laying down the multiannual financial 
framework for the years 2014-2020. 
The  expenditure  for  the  period  of  2021-N  is  given  only  for  illustrative  purposes.  The  financial  impact  on  the 
European Budget post 2020 will be part of the Commission proposals for the next Multiannual Financial Framework. 

EN 

38 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.3. 

Estimated impact on revenue 

–    The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

– 

– 

 

 

on own resources 

on miscellaneous revenue 

Appropriation
s available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

EUR million (to three decimal places) 

Impact of the proposal/initiative

52

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected. 

[…] 

Specify the method for calculating the impact on revenue. 

[…] 

52 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. 
gross amounts after deduction of 25 % for collection costs. 

EN 

39 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
ANNEX TO LEGISLATIVE FINANCIAL STATEMENT 

Applied methodology and main underlying assumptions 

The  costs  related  to  the  new  tasks  attributed  to  ESMA  have  been  estimated  according  to  three  cost 
categories: the staff costs, the infrastructure costs and the operations costs. 

According to preliminary current estimations by the Commission, the new tasks for ESMA will require 
2 new staff members. This would be in addition to the staff that is currently working for ESMA and 
that  are  covered  under  the  current  budget  for  ESMA.  The  costs  are  shared  on  a  60/40  basis  with 
Member States. 

The need for increased staff numbers reflects the additional tasks entrusted to ESMA and relates to the 
creation and maintenance of databases on national marketing requirements, regulatory fees and charges 
and notifications. These new tasks are set out in the proposed Regulation and further spelled out in the 
explanatory memorandum. 

General assumptions made when calculating the additional resources 

When calculating the additional resources the following assumptions have been made. 

Additional  posts  to  be  created  are  assumed  to  be  either  permanent  staff  of  temporary  agents  of  with 
average annual salary costs of €143 000. 

Due to the location of ESMA in Paris, a salary correction coefficient of 1 148 is taken into account due 
to the higher cost of living compared to Brussels. 

Recruitment  related  costs  (travel,  hotel,  medical  examinations,  installation  and  other  allowances, 
removal costs, etc.) are estimated at €12 700 per staff member. 

As a general remark, costs for ESMA are currently shared between Member States and the Commission 
on a 60/40 basis. 

Calculation of additional headcount 

For  the  calculation  of  the  additional  headcount  the  new  tasks  are  divided  in  two  main  areas  of  new 
work attributed to ESMA: database on regulatory fees and charges and database on notifications. For 
these  areas,  the  following  estimate  of  amount  of  work  is  taken  into  account.  For  the  database  on 
regulatory fees it is estimated that one project manager and one support staff are needed, whereas for 
the database on notifications one project manager and two IT support staffs are necessary. 

Table 1 presents the total estimated additional headcount per area for ESMA: 

Table 1: Total FTE per annum per area 

Total FTE per area 

Database on regulatory fees/charges 

Database on notifications 

Total 

EN 

1 

1 

2 

40 

  EN 

 
 
 
 
Calculation of the external infrastructure expenditure 

For IT related expenditure it is assumed that in total € 750 000 are needed to set up the databases and 
€150 000 remain as ongoing costs. 

Table 2: Total external infrastructure expenditure per annum per area 

Total  infrastructure  expenditure 
per area 

First  Year  (one-off 
costs) 

Subsequent 
Years 
(ongoing 
costs) 

Database 
fees/charges 

on 

regulatory 

€ 500 000 

€100 000 

Database on notifications. 

€250 000 

€50 000 

Total 

€750 000 

€150 000 

Total amount of expenditure 

Taken  into  account  the  above  assumptions  the  total  amounts  estimated  for  the  new  ESMA  tasks  are 
presented in Table 3. 

Table 3: Total related expenditures 

Cost type 

Calculation 

First Year  

Subsequent Years  

Staff expenditure 

€143 000  x  1. 148  per 
staff/year 

€328 328 (2 staff) 

€328 328 (2 staff) 

Expenditure  related 
recruitment  

to 

€12 700 fixed  per new 
staff member 

€25 400 (2 staff) 

0 

Infrastructure/IT 

See table 2 

€ 750 000 

€150 000 

Total* 

€1 103 728 

€ 478 328 

*Total  amounts:  not  taking  into  account  the  60/40  allocation  Member  States/  Commission  for 
ESMA budget. 

The expenditure for the period of 2021-N is given only for illustrative purposes. The financial impact 
on the European Budget post 2020 will be part of the Commission proposals for the next Multiannual 
Financial Framework. 

EN 

41 

  EN