ASIC and European Union authorities cooperate on alternative investment funds

19 July 2013

ASIC has entered into 29 supervisory cooperation arrangements with EU securities regulators, agreeing to help each other supervise fund managers operating across borders.

The cooperation is crucial in allowing Australian fund managers to manage and market Alternative Investment Funds (AIFs) in the EU under the rules of the Alternative Investment Fund Managers Directive (AIFMD). An AIF includes hedge funds, private equity funds and real estate funds, among others.

ASIC negotiated the arrangements with the European Securities and Markets Authority (ESMA) – on behalf of EU regulators – and were approved by ESMA’s Board of Supervisors on 22 May this year. ASIC signed the bilateral memorandums of understanding (MOUs) on 12 July 2013. The MOUs are applicable from 22 July, 2013.

ASIC Chairman Greg Medcraft said: "We are pleased to have these cooperation arrangements in place. They will allow Australian fund managers to manage and market alternative investment funds to professional investors in the EU under the AIFMD.

"The MOUs set up a framework for cooperation and information sharing between ASIC and Europe. They will help us to work together with European regulators to ensure fund managers are properly supervised, here and in Europe. We look forward to strengthening our relationships with our European counterparts."

Full press release

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