ALFI recently launched a new campaign on Twitter called #askALFI. Followers can ask questions related to the investment fund industry using hashtag #askALFI and ALFI experts respond to selected questions via short video messages. Claude Niedner (Arendt & Medernach) updates us on the latest news regarding the European Commission's project on the Capital Markets Union established to increase funding to SMEs, to create more opportunities for investors and to facilitate cross-border investment.
Mr Niedner says:
One of the objectives of the CMU is to improve the functioning of the passport for European investment funds. We speak about both UCITS and alternative investment funds. There are still some barriers to the functioning of the passport such as fees which are collected by national competent authorities when a fund is registered for a distribution in a host country. Some jurisdictions also impose some gold plating components on investment funds such as requirements for paying agents, local paying agents. The objective of the CMU with respect to investment funds is to improve the functioning of the passport and therefore take away those barriers. The objective is to have the CMU plan in place by 2019, but on the investment fund side, our expectation is that these measures will be put in place much more rapidly within the next couple of years.