How to boost cross-border fund distribution

Author: Lizzie Meager | Published: 12 Oct 2016

Regulators must break down the barriers to the distribution of funds across member states in order to improve cross-border investment and capital market activity in the EU, according to a September report by France’s securities regulator the Autorité des marchés financiers (AMF).

It claims that while the Alternative Investment Fund Managers’ Directive (AIFMD) passporting regime generally works well, there can be significant barriers to entry for funds wishing to market outside their home jurisdictions.

France's securities regulator wants close supervision of the marketing documents French investors receive
It defines these barriers as domestic rules and procedures that impede price discovery, execution or legal certainty. On top of the AIFMD passport, some member states charge a fee for foreign funds looking to market there.

But according to the AMF’s managing director Guillaume Eliet, there’s another issue often overlooked. “It’s one of demand, a question of cultural bias and trust for investors...