Cayman and Austria sign pact

The Cayman Islands has signed a memorandum of understanding with Austria to provide for mutual assistance in the supervision of alternative investment fund managers who operate on a cross-border basis in both jurisdictions.  

Cayman has now signed 26 MOUs with European countries as a condition for the continued marketing of Cayman Islands hedge funds throughout the European Union. 

The memoranda are in response to the Alternative Investment Funds Management Directive, which was implemented across Europe from July 22.  

It requires that certain conditions are met before non-EU countries can market alternative investment funds, such as hedge funds, in the EU. 

One of the requirements is that an agreement is in place between the securities regulators in the country where the fund is domiciled and the EU member state where the fund is marketed. 

Standards set 

The memoranda of understanding set standards for cooperation on the supervision of investment funds, aim to protect investors and work toward global coordination of information sharing. The MOUs will also provide for regular reporting to the relevant EU regulator as well as cross-border on-site visits.  

Managing Director of the Cayman Islands Monetary Authority Cindy Scotland, who signed the MOU on behalf of the Authority, said, “We are extremely pleased that our continuing efforts to secure MOUs with our European counterparts are bearing fruit, given the importance of Europe as a market for Cayman hedge funds.”  

Earlier this year, the European Securities and Markets Authority approved the signing of memoranda of understanding with the Cayman Islands. 

The only ESMA members that have yet to sign agreements with the Cayman Islands are Germany, Italy, Slovenia and Spain. 

0
0

NO COMMENTS