Guernsey Financial Services Commission signs co-operation agreements with European Securities Regulators on cross-border supervision of alternative investment funds.

Following the European Securities and Markets Authority’s (ESMA) approval of the co-operation arrangements the Guernsey Financial Services Commission (GFSC) has signed 27 bi-lateral co-operation agreements with the following EU/EEA securities regulators for the supervision of alternative investment funds, including hedge funds, private equity and real estate funds:

EU/EEA Authority

Autoriteit Financiële Markten (The Netherlands)

Autorité des marchés financiers (France)

Bundesanstalt für Finanzdienstleistungsaufsicht (Germany)

Central Bank of Ireland (Ireland)

Comissão do Mercado de Valores Mobiliários (Portugal)

Financial Services and Markets Authority (Belgium)

Financial Supervisory Authority (Romania)

Commission de Surveillance du Sector Financier (Luxembourg)

Cyprus Securities and Exchange Commission (Cyprus)

Czech National Bank (Czech Republic)

Finansinspektionen (Sweden)

Finanssivalvonta (Finland)

Finanstilsynet (Denmark)

Finanšu un kapitāla tirgus komisija (Latvia)

Finanzmarktaufsicht (Austria)

Estonian Financial Supervision Authority (Estonia)

Polish Financial Supervision Authority (Poland)

Financial Conduct Authority (United Kingdom)

Financial Supervision Commission (Bulgaria)

Hellenic Capital Market Commission (Greece)

Bank of Lithuania (Lithuania)

Malta Financial Services Authority (Malta)

Národná banka Slovenska (Slovak Republic)

Pénzügyi Szervezetek Állami Felügyelete (Hungary)

Fjármálaeftirlitiđ(Iceland)

Finanstilsynet (Norway)

Finanzmarktaufsicht (Liechtenstein)

 

The co-operation arrangements include the exchange of information, cross-border on-site visits and mutual assistance in the enforcement of respective supervisory laws. This co-operation will apply to Bailiwick of Guernsey 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 the Bailiwick of Guernsey. The arrangements also cover 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 national securities supervisors in EU countries and the GFSC.

 

The key elements of the EU-Guernsey cooperation arrangements are:

 

· 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, onsite visits and assistance in the enforcement of the respective laws;

· EU authorities will be able to share relevant information received from the GFSC with any of the 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 in the AIFMD for allowing managers from third countries to access EU markets or perform fund management by delegation from EU managers; and

· 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.

 

These agreements mean that Guernsey funds will continue to be able to receive investments from appropriately qualified investors in all these EU countries through those countries’ private placement regimes, subject to completion of the notification procedure of the national securities supervisor.  Had these agreements not been reached it would have become markedly more difficult for Guernsey funds to raise money from investors in all these European countries, adversely affecting Guernsey’s investment businesses.

 

Carl Rosumek, Director of Investment Supervision and Policy at the Guernsey Financial Services Commission, said:

“I am pleased that, we are able to confirm that the Commission has signed 27 co-operation agreements allowing collective investment schemes and AIFMs in Guernsey the opportunity to commence the process of registering with the relevant EU/EEA securities regulators in these jurisdictions.  The completion of these arrangements is a positive endorsement of the Commission. The Commission looks forward to working with these EU/EEA securities regulators in the cross-border supervision of the funds industry.”

 

William Mason, Director General said:

“The signing of the agreements is the culmination of an important stage in ensuring the preparedness of the Bailiwick for 22 July 2013.  I am grateful to the Investment Supervision and Policy Division for their hard work in leading us to this point.”