The EU modified the regulation for investment companies - read in the blog of the company COREDO

The EU modified the regulation for investment companies


Last year saw the EU Council issue the updated regulation for investment companies that are registered on the EU territory. The results of this modification will be stricter conditions applied to the operation of investment companies originally coming not from the European Union.

This article will advise what steps you should take if you are planning to open an investment business in the EU taking into consideration the new rules.

General overview

The aim of the new regulations is to manage the risks of investment companies. So, what does it mean for newly registering investment companies in the EU? According to the new rules, all investment and banking services are to be classified as services of credit institutions. It means that CRR and CRD IV regulation will be applied to the institution providing such services. When it comes to companies of classes 2 and 3, under the new regime they will be governed by simpler rules.

The new regime

Most probably, the new regime will come into effect in summer 2021. Therefore, all companies including the ones already functioning and those to be established are supposed to conform to the new requirement, when the date comes. In the future, the EU authorities are expected to announce all the details regarding the new regime and its content in the technical guidelines and standards.

As this article is mainly aiming at providing information, make sure not to take it as explicit advice. If you are planning to open an investment business in the EU in the nearest future, specialists in COREDO will be happy to provide you with a professional legal consultation.

Moreover, our specialists can prepare a plan for each stage of company registration respecting all the nuances of the EU investment regulation. Use the contacts on this page to get in touch with us and arrange your first consultation.


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