European Commission Proposal on AIFMD Pre-Marketing

Veneziano & Partners has published a white paper on the European Commission Proposal on AIFMD Pre-Marketing. The white-paper intends to discuss the proposed definition of Pre-Marketing to be introduced under AIFMD by the European Commission, via a proposal for an ad-hoc amendment of the directive.

Veneziano & Partners has  published a white paper entitled “European Commission Proposal on AIFMD Pre-Marketing.”

The white-paper aims at analysing the current status of the marketing and pre-marketing practices across Europe, as well as the delayed extension of the third-country passport under AIFMD. Consequences will derive from the introduction of the new concept of pre-marketing for US fund managers willing to market their non-EU funds in Europe under national private placement regimes.

One of the gaps in the European regulation on financial services is currently found around the concept of marketing of investment products. No real endeavour was initiated by European institutions to regulate this topic at a more general level in Europe. Accordingly, marketing is governed at a local national level in very different ways, sometimes on the basis of obscure local administrative practices of national regulatory authorities, not better codified nor easily accessible to the public.

AIFMD introduced for the first time a definition of marketing. In consideration of the nature of directive of the AIFMD and the consequent ability for Member States to retain some wiggle room in the actual implementation of directives in local legislation, the concept of marketing so introduced has been adapted to current local practices existing in the various European domiciles on the subject.

“We must note,” says Attilio Veneziano, founder of Veneziano & Partners, “that the approach now adopted by the European Commission and underpinning the new definition of pre-marketing is not entirely divergent from the common practice currently in place in the European domiciles where pre-marketing is already possible at the moment.  In fact, even before this definition was proposed, in order for certain activities towards investors to be characterised as pre-marketing, the fact that fund documentation was not in final form has always played a pivotal role. If the proposal is implemented in its current form, the fact that circulation of fund documentation in draft form to investors will not be allowed without a marketing authorisation being obtained will alter substantially the way deals in the alternative investment fund ecosystem will be carried out and will make even more problematic the approach to investors in domiciles where the national private placement regime has longer gestational periods.”

The white paper can be downloaded at: