Cross-Border Distribution Directive

Luxembourg management companies are drawing attention to the increasing reporting burden that often lands on their shoulders when European level regulation, such as the cross-border fund distribution directive, is passed. These requirements, they argue, often simply serve to placate national authorities over their lost jurisdiction. “It’s creating an additional burden on the investment fund manager,” said Chloé Piquet, a senior manager in regulatory services at Deloitte.

Although Luxembourg decided not to “gold plate” the EU Cross-Border Distribution Directive for funds, other member states have moved to add their own local requirements when transposing the legislation. What should asset managers be looking for as these rules are rolled out?