EU: Third ESMA report on Cross-border Distribution of Funds marketing communications requirements

Why should I read this?

On 6 January 2026, the European Securities and Markets Authority (ESMA) published its third report  (2026 Report) on the marketing requirements and marketing communications for Undertakings for the Collective Investment in Transferable Securities (UCITS) and Alternative Investment Funds (AIFs) in EU Member States.  

The 2026 Report contains an analysis of the effects of national laws, regulations and administrative provisions governing marketing communications on marketing UCITS and AIFs in the EU, taking into account both the Regulation (EU) 2019/1156 of the European Parliament and of the Council of 20 June 2019 on facilitating cross-border distribution of collective investment undertakings (CBDR) and information received from national competent authorities (NCAs).

NCAs confirm that national rules governing the marketing of funds (which are summarised in section 3 of the report) have not undergone any significant changes since the publication of the second report in July 2023 (2023 Report). This is because most of the changes highlighted in the 2023 Report were driven by the transposition of the Directive on Cross-Border Distribution of Collective Undertakings and the entry into force of CBDR and the ESMA Guidelines on the format and content of marketing communication.

The 2026 Report provides statistics (in section 5) on the volume of cross-border marketing fund notifications. In particular, ESMA identifies that:

• Luxembourg and Ireland are the leading notifying jurisdictions, accounting for 59% and 30% of fund notifications respectively.
• UCITS notifications comprise 56% of the total fund notifications, while AIFs account for 44%.
• Germany, Italy, France and Spain account for the highest number of inbound notifications, having more than 10,000 each, with UCITS representing the majority in each of these jurisdictions.

ESMA has submitted the 2026 Report to the European Parliament, the Council of the EU and the European Commission. ESMA will publish its next report in two years’ time.

How Eversheds Sutherland can help

If you are marketing AIFs or UCITS in the EU, you must ensure that you are compliant with the Regulation and CBDF Directive and any marketing or communication requirements imposed by NCAs.

Our lawyers, consultants and FS+ team are advising various institutions on marketing and passporting throughout the EU and the UK (under the national private placement and overseas funds regimes (OFR)), and further afield.

Our FS+ platform is designed to support financial services and asset management professionals with practical, tech-enabled legal solutions. FS+ has been built to help you navigate complex regulatory landscapes, and delivers clarity, agility, and results through tailored legal support.

Whether you are responding to new regulatory strategies or seeking proactive compliance support, FS+ offers:

• Regulatory and compliance advisory- tailored horizon scanning, digital reviews, and cross-border coordination to keep your business informed and compliant
• Fund registration, passporting and private placement- support across UCITS, AIFMD, OFR, and private placement regimes, with practical tools like our AIFMD II tracker and OFR guide
• Marketing and distribution support- full-service or limited-service agreement negotiation, with flexible pricing and streamlined processes
• Investment assistance- end-to-end support from subscription agreements to MFN rights management, including KYC coordination and side letter negotiation

Get in touch with the contacts below if you would like to discuss FS+ further.

Join our upcoming seminar

Retail investment reforms seminar: navigating change for 2026 - 29 January 2026

This session will provide practical insights into recent developments in the UK and help you consider their implications for your business as we move into 2026.

Our speakers will share updates and perspectives on:

• Direct to fund (D2F) and research payments
• Liquidity management
• Targeted support
• Discussion paper on expanding consumer access to investments
• Client categorisation and conflicts of interest
• Consumer Composite Investments (CCI)

Click here to register. 

This briefing includes Codrina Constantinescu as a contact.