The Australian Securities and Investments Commission, (ASIC) has entered into 29 supervisory cooperation arrangements with European Union (EU) securities regulators. The accord agrees to help each other supervise fund managers operating across borders.
The agreement will be significant in allowing Australian fund managers to manage and market alternative investment funds in the EU under the rules of the Alternative Investment Fund Managers Directive (AIFMD).
AIFMD controls the ability of European investors to access Asian markets via the Asian buy-side.
The regulation will ultimately introduce an EU passport system for the marketing of alternative investment funds whereby a fund manager can market funds to professional investors across Europe via authorisation in a single member state.ASIC negotiated the arrangements with the European Securities and Markets Authority (ESMA), which acted on behalf of EU regulators.
The agreement was approved by ESMA’s Board of Supervisors and ASIC signed the bilateral memorandums of understanding ten days ago. They come into force today and set up a framework for cooperation and information sharing between ASIC and Europe.