Fund Distribution Alert 2021-29

On 19 November 2021, the EU Directive 2019/1160 entered into force in Finland following a plenary vote on, and presidential approval of, the government's proposal to amend the Mutual Funds Act, the Alternative Fund Managers Act and the Financial Supervision Authority Act.

Below are the main changes in terms of cross-border fund distribution, which go further than the Directive being transposed:

• The law gives powers to the FIN-FSA to request prior notification of marketing communications used by fund companies.

• The law gives powers to the FIN-FSA to request prior notification of marketing communications used by EEA AIFMs towards retail investors;
• Pre-marketing by EEA AIFMs is possible towards both retail and professional investors;
• Non-EEA AIFMs may conduct pre-marketing towards professional investors in Finland and should notify the FIN-FSA directly thereof under similar conditions applicable to EEA AIFMs;
• It is noted that the right of investors to invest at their own initiative in non-EEA AIFs remains applicable. Professional investors may continue, by written consent, to waive their right to information as per Chapter 12. Article 4(6) of the Alternative Fund Managers Act regarding an AIFM which manages a non-EEA AIF;
• A denotification procedure is introduced for non-EEA AIFMs, similar to EEA AIFMs;

The amending laws can be accessed as follows:

• Law amending the Mutual Funds Act in Finnish (PDF | 0.3MB) and in Swedish here (PDF | 0.3MB);
• Law amending the Alternative Fund Managers Act in Finnish (PDF | 0.3MB) and in Swedish here (PDF | 0.3MB);
• Law amending the Financial Supervision Authority Act in Finnish (PDF | 0.2MB) and in Swedish here (PDF | 0.2MB).

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