ASIC joins EU regulators to monitor alternatives

The Australian Securities and Investments Commission (ASIC) and 29 European Union (EU) securities regulators have entered into supervisory cooperation arrangements to support Australian alternative investment fund managers operating in the EU. 

The supervision will centre around the Alternative Investment Fund Managers Directive (AIFMD) which covers hedge funds, private equity funds, real estate and more. 

ASIC signed bilateral memorandums of understanding (MOU) earlier this month following negotiations with the European Securities and Markets Authority (ESMA) and approval by ESMA's board of directors in May.  

The MOUs come into operation this week. 

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ASIC chairman Greg Medcraft said the agreements would allow Australian fund managers to market and manage alternative investment funds for professional investors in the EU. 

"The MOUs set up a framework for cooperation and information sharing between ASIC and Europe," he said.  

"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." 

Securities regulators signing the arrangement include those in France, Germany, Ireland and the Netherlands.   

While EU member states have a transition period which allows individual governance of alternative fund managers for a period following the implementation of the AIFMD on 22 July, non-EU alternative investment fund managers will need to comply with a number of additional rules if marketing or managing alternative investment funds in those countries.