Tapping into EU
Europe is the largest market for fund products after the United States. Despite the advances of the European single market, it is no easy task for a Promoter to maintain a successful, viable and compliant distribution strategy. The temptation for those new to capital raising in Europe may be to think “I’m not going to bother, this is going to take too much effort” or even, “these rules don’t really apply to me”. However, with forward planning and guidance, the European market remains open to the rest of the world.
The Right Route
When looking for an EU in-house solution, the fund Promoter should weigh the implications of moving substantive risk or investment management control to an EU internal satellite office.
Given these factors, using our Man.Co services may be beneficial by helping to allocate resources in the most efficient manner.
How does EU passports work?
- “UCITS passport” refers to the fact that any authorized UCITS in one EU country can be sold freely into another without the need for any additional authorization.
- A Promoter uses Luxembourg as domicile for his UCITS fund and then sells the Fund across Europe and worldwide.
- UCITS are regulated at the fund level.
- Unlike UCITS regulations, the AIFMD directly regulates alternative asset managers and indirectly regulates alternative investment funds.
- Once an AIFM is authorized in one EU member state, the passport permits to market its shares to professional investors in its home country as well as any of the other 27 EU member states.