ESMA announces today that it will begin discussions with non-EU supervisors of entities subject to the requirements of the Alternative Investment Fund Managers Directive (AIFMD) about supervisory co-operation issues. This follows agreement by ESMA’s Board of Supervisors to follow a common policy in relation to the co-operation arrangements under AIFMD, which should be in place between EU and non-EU securities supervisors by July 2013.
ESMA will lead on the negotiation of co-operation arrangements with non-EU authorities on behalf of EU supervisors. This will be done through a common Memorandum of Understanding (MoU), which will facilitate the cross-border supervision of those entities subject to AIFMD such as managers of alternative investment funds, depositaries and entities performing tasks under delegation by the manager. The MoU will be based on IOSCO’s Principles Regarding Cross-Border Supervisory Co-operation.
While ESMA will negotiate on behalf of the EU competent authorities, the final signature of the individual MoUs will be the responsibility of each EU competent authority.
ESMA’s co-ordination of the negotiation process will allow both EU and non-EU competent authorities to have in place consistent co-operation arrangements under AIFMD in an efficient and timely fashion.