Cross-Border Distribution of UCITS

A CACEIS PRODUCT DEVELOPMENT PUBLICATION - 2011

FUND DISTRIBUTION MODELS & PLAYERS

2.2

The global TA model

For a few years a new fund distribution model has emerged to facilitate cross-border distri- bution: The global TA model, illustrated in graph 20.

Graph 20: The global TA model

Investors

Investors

Investors

Investors

Distributors in country A

Distributors in country B

Distributors in country C

Distributors in country D

The global TA acts as a global hub, facilitating the fund distribution process in a cross-border environment.

GLOBAL TA

Target centralising agent or TA 1

Target centralising agent or TA 2

Target centralising agent or TA 3

Fund 1

Fund 2

Fund 3

Source: CACEIS, 2011

The global TA pre-centralises the subscriptions and redemptions coming from the various distributors appointed by a given fund management company in the different countries of distribution and then routes orders to the target centralising or transfer agents. It acts as a global hub, facilitating the fund distribution process in a cross-border environment. As the global TA uses registers, orders can be easily marked. This model enables fund management companies to export their funds in numerous coun- tries while benefitting from an efficient order marking process and a centralised view of the distribution activity all over the world.

2.2/3

2.3

Players’ roles & responsibilities for the principal distribution markets

2.3.1

Players shared by both CSD and TA models

I nvestors Investors are the parties whose money is invested in funds and who stand to benefit from the positive performance of that investment. There are two types of investor - retail inves- tors and institutional investors. L ocal authorities Local authorities are the regulatory bodies which define the rules for fund distribution play- ers operating in the domestic market, for example the AMF in France, the BaFin in Germany, the CBFSAI in Ireland, the CNMV in Spain, the CONSOB in Italy, the CSSF in Luxembourg or the SFC in Hong Kong. In the framework of the European fund passport, they ensure that fund distribution complies with the rules in force in the country of distribution. Out of this framework, they ensure that the product complies with all the rules relating to the distribu- tion of foreign funds in the country. The local authorities play an important role in initial fund registration and post-registration processes.

Cross-border distribution of UCITS | page 37