11 March 2014
On 4 March 2014, Fundsquare, the market infrastructure for investment funds, successfully completed its first passporting request in the context of the Alternative Investment Fund Managers Directive (AIFMD).
Under the AIFMD, an alternative investment fund manager in one European Union country may market its funds to investors in another EU country provided that a notification procedure is correctly followed.
In this case, Luxembourg Investment Solutions, an independent management company authorised AIFM, used Fundsquare to get assistance in initiating and completing this procedure.
On behalf of this AIFM, Fundsquare submitted a file for the request of a marketing passport. This involved the setting of a detailed document package, submission of the package to the Luxembourg supervisory authority, the CSSF, and transmission to the target market authority, the BaFin in Germany.
Following the successful completion and notification of transmission from the Luxembourg supervisor, Luxembourg Investment Solutions can now start marketing their alternative investment fund in the German market.
Teodora Croitoru of Luxembourg Investment Solutions said, “As a third-party fund management company, we see many opportunities for distribution of alternative funds in Europe as a result of the AIFMD. This first notification is a good initial step and we were pleased to work with a specialist in cross-border distribution support.”
Fundsquare already has many years of expertise in notification services related to fund marketing passports for UCITS funds, via e-file.lu, its much-used compliance platform for investment funds. The passporting service for alternative investment funds leverages this existing solution.
Fundsquare was constituted in June 2013 and was set up by the Luxembourg Stock Exchange in order to create a unique international market infrastructure that provides services to substantially support and standardise cross-border distribution of investment funds. The main objective of this utility is to facilitate the relationships between professional investors and funds.
Its initial scope of services focuses on fund operation flows and information exchanges. As such, it provides order management services to fund distributors, promoters and transfer agents, as well as information services to the fund industry as a whole.
Fundsquare has a strategic partnership with SWIFT and Altus for the infrastructure. As partners, they deliver valuable expertise in communication and operational models. Both power Fundsquare for its order management services.
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