ESMA approves Guernsey AIFMD cooperation agreement

The European Securities and Markets Authority has approved an agreement negotiated with the Guernsey Financial Services Commission covering alternative investment funds affected by the introduction of the AIFMD in July.

The agreement, drawn up as a Memorandum of Understanding, covers hedge, private equity and real estate funds, and was negotiated by ESMA on behalf of the 27 EU member states as well as Croatia, Iceland, Liechtenstein and Norway.

Henceforth, Guernsey will ensure exchange of information, cross-border on-site visits and mutual assistance in enforcement of supervisory laws – applicable to alternative fund managers that manage or market alternative investment funds in the EU, and EU AIFMs that manage or market alternative investment funds in Guernsey.

Key elements of the EU-Guernsey cooperation arrangements include:

• EU and Guernsey supervisors will be able to supervise fund managers that operate on a cross border basis in the Bailiwick and the EU

• The co-operation between the authorities includes the exchange of information, cross border, on-site visits and assistance in the enforcement of the respect laws

• EU authorities will be able to share relevant information received from the GFSC with other EU authorities, ESMA and the European Systemic Risk Board, provided appropriate safeguards apply

• The existence of co-operation arrangements between the EU and non-EU authorities is a precondition of the AIFMD for allowing managers from third countries to access EU markets or perform fund management by delegation from EU managers

• The EU-Guernsey co-operation arrangements are applicable from 22 July 2013 and enable cross-border management and marketing to professional investors of alternative investment funds.

Carl Rosumek, director of Investment Business at the Guernsey Financial Services Commission, said: “I am pleased that, following months of detailed work and engagement with ESMA, that ESMA has approved the cooperation arrangements between the Commission and EU securities regulators. ESMA’s approval of these arrangements is a positive endorsement of the Commission. The arrangements will further improve cross-border supervision of the funds industry and ultimately reinforce investor protection in the cross border operations of alternative funds”.


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