Fund Distribution Alert 2021-19

On 2 August 2021, l’Autorité des Marchés Financier (the “AMF”) updated the below instructions and position in connection with the transposition of the EU Directive 2019/1160:

• AMF instruction DOC-2011-19: Authorisation procedures, preparation of a KIID and a prospectus and periodic reporting for French and foreign UCITS marketed in France
• AMF instruction DOC-2014-03: Procedure for marketing units or shares of AIFs
• AMF position DOC-2014-04: Guide to UCITS, AIF and other investment fund marketing regimes in France

The AMF also published on its Website the Ministerial Order of 23 July 2021 approving the amendments to the General Regulations of the Autorité des Marchés Financiers (available here in French).

As a result of the transposition, a physical presence for the fulfilment of facilities services in terms of payments and information to investors is no longer required in France as of 2 August 2021.

However, the French authority recommends that foreign UCITS and foreign AIFs, managed by an EU management company or a third-country manager, should appoint a correspondent established in France to perform the facilities’ tasks and to proceed with the annual payment of the regulatory fixed fee.

Both instructions DOC-2011-19 and DOC-2014-03 give detailed information about the file to be submitted with AMF in case of de-notification of UCITS or AIFs (French or EU Funds with French or EU manager), as follows:

• The de-notification email should contain:
  • The letter of de-notification:

 Templates are made available on the AMF website:

• For French AIFM: Appendix 4 DOC-2014-03 (only in French)
• For EU AIFM: Appendix 4-1 DOC-2014-03 (in English)
•  For French Management company of EU UCITS: Appendix XVIIIa DOC-2011-19 (in English)
  • Information addressed individually to all investors about how they can repurchase or redeem, free of any charges the units or shares before the deregistration.
  • Information made public by means of a notice available in a durable medium about the intention to terminate arrangements made for marketing units or shares.
  • Certificate confirming the termination of the agreement with financial intermediaries in order to prevent any offering or placement of units or shares after their deregistration.

The AMF also details the rules applicable to the pre-marketing concept:

• The DOC-2014-03 contains an Appendix for the declaration of the start of pre-marketing: Appendix A (in English).
• The DOC-2014-04 defines the investors target for the pre-marketing:
  • Professional investors,
  • Non-professional investors whose initial subscription would be greater than or equal to EUR 100,000 (for AIFs open to professional investors).

For further information on the directive, please consult our fund distribution alert dated 16 July 2019 accessible here.

Please feel free to contact us should you require any additional information.

Partner
+352 22 51 51 7892
said.fihri@kpmg.lu

Director
+352 22 51 51 7271
stephanie.zedda@kpmg.lu