What is reverse solicitation?
Reverse solicitation is the name given to the circumstances in which a prospective client approaches an investment fund or its manager on its own exclusive initiative. The inquiry must not be in response to advertising or marketing of any kind.
What is AIFMD filing?
The purpose of AIFMD reporting is to effectively monitor and prevent systemic risk and market disruptions. The reporting obligation applies to registered and authorised AIFMs, and to those AIFMs that are established in a third country (non-EEA country), which market in Finland the AIFs they manage.
What is reverse solicitation FCA?
Reverse solicitation allows third-country firms (which now includes UK firms) to provide certain services to clients in the EU without the need for local authorisation provided the client ‘exclusively initiates’ the business relationship.
Is reverse solicitation allowed?
Reverse solicitation cannot be considered as a business model; it is an exemption that should be regarded as an exception, on which one can rely at restrictive conditions only.
What is reverse solicitation MiFID?
Reverse solicitation under MiFID This is when a client established within the EU initiates “at its own exclusive initiative” the provision by a third country firm of investment services or activities. It allows a firm to service EU clients without triggering local licensing requirements.
Is an AIFM a ManCo?
For alternative investment fund (AIF) promoters looking to domicile and market their AIF in Europe, outsourcing core alternative investment fund manager (AIFM) functions to a provider of third-party management company (ManCo) and AIFM services is a quick, cost effective and compliant route to cross-border distribution.
What is reverse solicitation exemption?
Reverse solicitation designates the circumstances in which a foreign financial intermediary provides certain services to a client upon the latter’s request, without prior solicitation by the financial intermediary.
What is the difference between AIFMD and KAGB?
The General Approach Taken by the German KAGB The rules under the KAGB substantially exceed the minimum requirements set forth by the AIFMD. The KAGB is not just a piece-meal transformation of the AIFMD requirements, but has a much broader, more ambitious reach.
What are the implications of AIFMD II on reverse solicitation?
In November 2021, we wrote an article about the implications of CBDF on reverse solicitation. With AIFMD II, European regulators seek to crack down further on the use of reverse solicitation to sidestep pre-marketing rules in EU jurisdictions.
Does the KAGB differentiate between transactions that involve advice and not?
The KAGBdoes not differentiate between transactions which involve advice and those that do not. The client must be provided with the key investor information and the required sales documentation before they submit a purchase order.
What does the KAGB mean for open-end funds in Germany?
It aims to provide an overreaching, unified codification of the investment law in Germany for open-end funds and, for the first time, closed-end funds. In a nutshell, the KAGB provides rules for all types of investment funds and their managers.