Fund groups will be able to distribute non-Ucits (Nurs) funds to investors in European Union (EU) member states under proposals set by the European Commission.
Currently, fund managers can sell only Ucits funds to European countries, but in a draft directive for Alternative Investment Fund Managers (AIFM, new rules would apply to Nurs vehicles as well.
The Investment Management Association (IMA) has welcomed the proposals.
Jarkko Syyrilä, the director of international relations, says: “The IMA has long been calling for firms to be able to distribute hedge funds, property funds, and other non-harmonised funds cross-border to institutional investors; the proposed Directive incorporates this.
“If the Directive comes to fruition, EU authorised AIFMs will be able to distribute both EU and non-EU domiciled funds to professional investors in any Member State. These changes to the rules will offer more choice for Europe’s professional investors and further strengthen Europe’s fund management industry.
“However, waiting another three years until third country funds can be distributed in Europe is too long. European investment funds are marketed around the globe with remarkable success. We are fully convinced that open markets will be of benefit to Europe. IMA will be engaging with all the relevant authorities to discuss the draft directive in further detail.”