Introduced in August 2021, the Cross-Border Fund Distribution Directive is a regulatory framework designed to harmonise regulations across member states of the European Union.
One key provision of the directive is the concept of pre-marketing, which refers to providing information related to a strategy for an AIF that has not yet been established.
It states that all AIFMs (EU or non EU) marketing or intending to market any AIFs to retail investors must establish a local facility in each of the host members states where it is marketing the AIF to retail investors.
For those targeting professional or institutional investors, they do not need this facility but must register the fund in those markets it subsequently wants to rely on reverse solicitation in the following 18 months.