In the first quarter of 2018, private fund managers saw a number of important European regulatory changes take effect, with additional changes in the pipeline. This note is intended to summarize certain headline changes, and should be of interest to managers active in, and marketing into, Europe. Highlighted changes include:
· the entry into force of the Second Markets in Financial Instruments Directive (“MiFID II”), in particular changes to the classification of local authorities;
· the entry into force of the Packaged Retail and Insurance-based Investment Products (“PRIIPs”) Regulation, in particular the requirement for the production of a key information document where materials are made available to retail clients;
· changes to the European Venture Capital Funds Regulation (the “EuVECA Regulation”);
· changes to European data protection rules under the General Data Protection Regulation (“GDPR”); and
· the announcement this week of a proposal for a new European Directive on the cross-border distribution of investment funds (the “Distribution Directive”), which (amongst other things) seeks to introduce a harmonized definition of “pre-marketing”.