EC Markets Integration And Supervision: Key Proposals For Investment Funds

• Published date: 11 December 2025
• Law Firm: William Fry
• Author: Mr John Aherne and Vincent Coyne

The European Commission (EC) has published its much-anticipated Market Integration and Supervision Package on 4 December 2025.

The measures are wide-ranging. In this article we note some key proposed changes to AIFMD, the UCITS Directive and the Cross-border Distribution of Funds Regulation (CBDR). There are also proposed changes to the legislative frameworks regulating asset management, trading, post-trading, innovation, and the supervisory structure.

This comprehensive package of measures adopted is designed to remove barriers and unlock the full potential of the EU single market for financial services. It is a central component of the Savings and Investments Union (SIU) strategy. The next step is negotiation and approval by the European Parliament and the Council.

Product passporting/fund registration streamlining

• A new "passporting upon authorisation" regime which will grant UCITS funds and AIFs, through their AIFMs, immediate single market access to their chosen Member States upon authorisation.
• The cross-border marketing rules in the UCITS Directive and AIFMD will move to the CBDF regulation and are amended to optimise marketing notification and de-notification procedures.
• CBDR is amended to clarify that AIFMs, EuVECA and EuSEF managers and UCITS management companies should ensure that the requirements on...