Tuesday, October 8, 2013

EU Regulators Sign Cross-Border Hedge Fund Regulation Pact with US and Others

The European Securities and Markets Authority (ESMA) has approve cooperation agreements with seven global counterparts in five jurisdictions.  These agreements with regulators in the Bahamas, Japan, Malaysia, Mexico and the United States formalize details of cooperations in the supervision of alternative investment funds, including hedge funds, private equity and real estate funds. 


The agreements formalize cooperation arrangements with:
  • Commodity Futures Trading Commission, United States of America; 
  • Financial Services Agency of Japan; 
  • Ministry of Economy, Trade and Industry of Japan 
  • Ministry of Agriculture, Forestry and Fisheries of Japan; 
  • Securities Commission, Malaysia; 
  • National Banking and Securities Commission of the United Mexican States; and 
  • Securities Commission of the Bahamas. 

Through these cooperation agreements, the various regulators will exchange information, coordinate cross-border on-site visits, and provide mutual assistance in the enforcement of the participants' respective regulations. The agreements cover third-country alternative investment fund managers (AIFMs) that market alternative investment funds (AIFs) in the EU and EU AIFMs that manage or market AIFs outside the EU.  The agreements also cover cooperation in the cross-border supervision of depositaries and hedge fund managers’ delegates.

These seven new agreements bring the total number of such cooperation pacts signed by ESMA and global regulators to 31.  A full list of the agreements, with links to the individual Memoranda of Understanding is available at: http://www.esma.europa.eu/node/66691

ESMA’s guidelines on the model Memoranda of Understanding are available at: http://bit.ly/15OzdtL

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