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FINANCIAL SERVICES : ALTERNATIVE INVESTMENT FUNDS: EU TO COOPERATE WITH THIRD COUNTRIES.

The European Securities and Markets Authority (ESMA) has approved cooperation agreements with seven countries - including Japan, Mexico and the United States - for the cross-border supervision of alternative investment funds. In total, it has now reached 38 agreements with a great number of third countries on these protocol agreements (memoranda of understanding). These will apply from 22 July onwards, in line with Directive 2011/61/EU on alternative investment fund managers (AIFMD). This date corresponds to the entry into force of said directive (deadline imposed on member states to transpose this legislative text into their national law).

Alternative investment funds are collective investment undertakings, which collect capital from investors in their interests. They include various categories of funds, such as "speculative" funds, and capital investment funds. The AIFMD mainly regulates the activities of managers of these funds.

The agreements concluded betwen the ESMA and the competent authorities of third countries are significant. From 22 July, managers of alternative investment funds from a third country that has not signed this type of MoU will no longer be authorised to sell or manage such funds in the EU.

Specifically, these funds organise cooperation between the competent national authorities in the EU and the countries concerned. They concern the supervision of managers of funds established in the third country which operate in the EU (management or sale of funds) and vice versa (managers of European alternative investment funds which operate in the third country concerned).

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Publication:European Report
Article Type:Brief article
Geographic Code:4E
Date:Jul 19, 2013
Words:241
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