Europe and UAE tighten cross-border fund rules

February 19, 2026

Regulators across Europe, the United Kingdom, Switzerland and the United Arab Emirates have introduced a series of updates that collectively reshape the cross-border fund distribution landscape in 2026.

A recent report from Zeidler Group delves into the recent regulatory and fee changes across Europe, the UK, Switzerland and the UAE.

From supervisory restructuring and mutual recognition agreements to disclosure flexibility and fee increases, investment managers are facing a regulatory environment that is both more defined and, in some cases, more costly.

In the United Arab Emirates, the Securities and Commodities Authority has formally rebranded as the Capital Markets Authority (CMA), effective 1 January 2026. The change accompanies two new Federal Decree Laws. One sets out the CMA’s establishment and powers, while the other governs capital markets more broadly. Notably, the new framework clarifies that marketing foreign funds to UAE investors falls within domestic regulation regardless of where the marketing activity occurs. This reinforces the requirement for regulatory approval when offering foreign funds onshore and strengthens supervisory oversight, Zeidler said.

The United Kingdom and Switzerland have adopted a more facilitative approach through the Berne Financial Services Agreement (BFSA), which took effect on 1 January 2026. The mutual recognition regime allows authorised firms in each country to provide certain investment services to wholesale and sophisticated clients on a cross-border basis without full host-country authorisation. Eligible firms must be authorised in their home state and listed on the relevant BFSA register. UK regulators, including the Prudential Regulation Authority and the Financial Conduct Authority, have issued guidance, while Switzerland’s FINMA has published its own clarifications.

In Iceland, updated guidance on PRIIPs Key Information Documents introduces limited flexibility on language requirements. Under certain conditions, an English-language KID may be provided, provided distributors ensure investors understand the product’s features and risks and comply with other regulatory obligations. However, where products are marketed in Iceland or in Icelandic, an Icelandic-language KID must also be supplied.

For more insights into changes around the world, read the full story here.