The French Financial Market Authority introduces the concept of “pre-marketing” of funds

With a view to facilitating the launch of new funds in France, the AMF published on the 4th of July 2016 a revised version of its guidance regarding the marketing of UCITS and AIFs in France (DOC-2014-04) (the Guidance). The new version of the Guidance amends the definition of marketing and enlarges the spectrum of cases under which, subject to certain requirements, marketing will not be characterised, in particular, in the case of pre-marketing. This approach taken by the French regulator is intended to allow managers to contact potential investors in order to assess their interest for a UCITS or an AIF without being subject to marketing requirements. The Guidance also states that OTC trades between investors (on the secondary market), participation in conferences or organization of meetings with professional investors, response by a management company to a request for proposal as well as certain operations relating to the management company and its staff remuneration do not fall within the scope of marketing restrictions.