Cross-Border Distribution of UCITS

FOREWORD

Since the introduction of the UCITS (Undertakings for Collective Investments in Transferable Securities) Directive in 1985, UCITS funds have become widely used by asset management companies looking to distribute fund products outside their national borders. Today cross- border distribution of UCITS spreads to a broad range of domiciliations and not only Luxem- bourg and Irish-domiciled funds. Furthermore, although UCITS were developed originally to harmonise Europe’s fund struc- tures and promote fund distribution between Member States, nowadays they have also be- come a “gold standard” recognised by a host of countries worldwide. Their flexibility for cross- border investment and their highly regulated nature has firmly established their popularity among investors. The UCITS IV Directive is set to intensify the attractiveness of this fund brand even further. The new business opportunities arising in regions outside of Europe, such as Asia, Latin America and the Middle East, will enable European management companies to continue their expansion in both financial and geographic terms. More than ever, cross-border distribution is now a strategic issue for CACEIS’s clients. They have to face new challenges, notably in the context of a fast changing environment, in terms of geographic areas of distribution, technol- ogy and regulation. As an experienced player in the domain, CACEIS has a thorough understanding of this rapidly changing fund distribution environment, including sales and market opportunities, players’ roles and responsibilities, tax and regulatory issues, information and operational workflow complexity, and management of complex third-party distribution networks. It is this experi- ence, expertise and know-how, gained through supporting many clients over the years that we share in this document. The combination of a fund distribution environment that is continuously increasing in com- plexity and a significant rise in the number of clients seeking support for their cross-border distribution plans have led CACEIS to develop this comprehensive document which covers the many different aspects of cross-border UCITS distribution (the first edition was published in November 2008). Herein, you will find a detailed assessment of the current market environ- ment, the industry players and the challenges and opportunities faced, as well as copies of, or references to the principal legal texts regulating the activity. This publication also gives details of our support services, explaining how CACEIS can facilitate the administrative side of your operations and ensure your business complies with the rules and regulations in place in each country of distribution.

We trust you will find this publication both relevant and informative.

Laurent Majchrzak , Global Head of Fund Distribution Services