What is reverse solicitation Aifmd?
Reverse solicitation, also called “passive marketing”, refers to activities that are generally not considered as marketing under the AIFMD and to which the AIFMD marketing requirements do not apply.
What does reverse solicitation mean?
passive marketing
Reverse enquiry (also known as passive marketing or reverse solicitation) is where an investor, who has not had any previous contact with an investment manager/distributor, contacts that investment manager/distributor in respect of a potential investment in a fund.
What constitutes marketing under AIFMD?
What is ‘marketing’ under the Directive? “Marketing” under the Directive means “direct or indirect offering or placement at the initiative of the AIFM or on behalf of the AIFM of units or shares of an AIF it manages to or with [professional] investors domiciled in the EU.”
How does reverse solicitation work?
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. This also applies where a person acts on behalf of the third-country firm.
What does MiFID II cover?
MiFID II covers virtually every asset and profession within the EU financial services industry. MiFID II regulates off-exchange and OTC trading, essentially pushing it onto official exchanges. Increasing transparency of costs and improving record-keeping of transactions are among MiFID II’s key regulations.
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.
What is reverse inquiry in finance?
Reverse Enquiry means a process whereby the investor(s) approach(es) the Issuer to sell STBs on the basis of mutually agreed terms and conditions.
Can AIFs be marketed to retail investors?
Facilities available to retail investors Each member state may, at its discretion, permit marketing of AIFs to retail investors in accordance with local laws – however a harmonised cross-border approach is currently lacking.
What is a professional investor under Aifmd?
Definition of Professional Investor in the AIFMD Under the AIFMD, a “‘professional investor’ means an investor which is considered to be a professional client or may, on request, be treated as a professional client within the meaning of Annex II to Directive 2004/39/EC”.
What are the MiFID 2 requirements?
The main objectives of MiFID II include the pursuit of harmonised regulation across EU financial markets, increased competition between EU financial markets, ensuring appropriate levels of investor protection, and strengthening of supervisory powers. This paper provides a summary of the key aspects of MiFID II.
Who is subject to MiFID II?
MiFID II not only covers virtually all aspects of financial investment and trading but also covers virtually all financial professionals within the EU. Bankers, traders, fund managers, exchange officials, and brokers—and their firms—all have to abide by its regulations.
What does MiFID II stand for?
Markets in Financial Instruments Directive
The goal of the Markets in Financial Instruments Directive (MiFID) is to increase transparency across EU financial markets and to standardize regulatory disclosures for firms. MiFID was replaced by an updated regulatory directive, MiFID II, in 2018.
https://www.youtube.com/watch?v=kmu0QPnKPAQ
