EU and Swiss regulators agree on cross-border supervision of alternatives

The EU and Swiss financial regulators have agreed terms on the cross-border supervision of alternative funds, including hedge funds, private equity and real estate funds, FINMA has said in a statement.

The European Securities and Markets Authority (ESMA) has approved the co-operation arrangements between the Swiss Financial Market Supervisory Authority FINMA and the EU securities regulators on the supervision of alternative investment funds.

The FINMA statement says the the co-operation arrangements include the exchange of information, cross-border on-site visits and mutual assistance in the enforcement of the respective supervisory laws.

This co-operation will apply to Swiss alternative investment fund managers (AIFMs) that manage or market alternative investment funds (AIFs) in the EU and to EU AIFMs that manage or market AIFs in Switzerland.

The agreement also covers co-operation in the cross-border supervision of depositaries and AIFMs’ delegates. The agreement will take the form of a Memorandum of Understanding (MoU) between the EU securities supervisors and FINMA.

Steven Maijoor, ESMA Chair, said: “The agreement by EU and Swiss supervisors to facilitate co-operation on the supervision of cross-border alternative funds is an important step in increasing investor protection and the global consistency of supervision.

“ESMA sees this agreement as a signal of third countries’ willingness to co-operate to meet AIFMD’s requirements, however further work needs to be done with non-EU authorities to achieve our goal of completing all MoUs by the July 2013 deadline.”

Anne Héritier Lachat, FINMA Chair, commented: “The agreement between FINMA and EU supervisors will further improve cross-border supervision of the funds business and ultimately reinforce investor protection in cross-border operations of alternative funds.


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