Key Takeaways:

• A new Directive and Regulation on cross-border distribution of funds were agreed by the European Union co-legislators in February 2019. They are expected to come into force in 2021.
• The new rules will harmonise the definition of “pre-marketing” across the EU, and introduce new notification requirements for pre-marketing activity. They will also make several other important changes that will affect EU-based managers who market funds using the passport.
• It is currently unclear how the new rules will apply to third-country managers, but it is likely that corresponding changes will be made to national private placement rules to ensure that EU-based managers are not put at a disadvantage.