Back in December, the European Parliament’s Economic and Monetary Affairs Committee (ECON) announced that it had adopted drafts proposals from the European Commission for a new Directive and Regulation on the cross border distribution of collective investment funds. ECON subsequently published two reports outlining the proposed Directive and Regulation. The reports propose certain changes to the current UCITS and AIFMD Directives to 'further coordinate the conditions for fund managers operating in the internal market and facilitate cross-border distribution of the funds they manage', including outlining new rules and procedures to align the notification procedures under UCITS and the AIFMD.
Amongst the proposals outlined in ECONs reports is that the Regulation should amend the current PRIIPs Regulation to extend the exemption for UCITS funds from 31 December 2019 to 31 December 2021. The PRIIPs Regulation has been the subject of industry criticism, particularly in relation to its requirements around the prediction of future performance and estimations of transaction costs.
On 24 January, the European Parliament updated its procedure files so that the new Directive and Regulations proposed by ECON will be considered in its plenary session of 15 to 18 April. For further information on the proposed changes, please refer to ECON’s reports on the Directive and Regulation.