Fund distribution requires a good knowledge of many different sets of rules, regulation and careful management. Christopher has many years of experience as a project manager involving cross-border distribution of offshore funds.
Cross-border distribution of funds
There are various models for distributing funds, whether via platforms (fund supermarkets, life wrappers, trading platforms), by private placement to selected institutional investors or retail distribution in countries that permit this and the fund has been registered.
The most standardised form of distribution are the European UCITS (Undertakings for Collective Investment in Transferable Securities) and AIFMD (Alternative Investment Fund Management Directive) passport regimes available to funds in the EU/EEA for marketing within those jurisdictions. Whilst Guernsey funds currently do not have access to either passport marketing to institutional investors is possible in many jurisdictions under the AIFMD NPPR (National Private Placement Regime) as allowed for under Article 42 of AIFMD. Whilst distribution is not EU/EEA-wide it is possible in most key countries with differing levels of complexity. Importantly the main requirement for NPPR registration is approval from or notification to the local regulator coupled with reporting under Articles 22 to 24. This is much simpler than compliance with the full directive.
Whilst AIFMD NPPR is the most widely-used form of overseas distribution there are many different models used for selling in many different countries. Midshore have a database of requirements for many key countries ranging from full retail registration to exemptions possible for restricted investor numbers. These cover countries across various continents. Please contact us for more detail.