The European Securities and Markets Authority (ESMA) has approved co-operation arrangements that can now be entered into between European Economic Area (EEA) financial services regulators and 34 non-EEA jurisdictions where alternative investment funds (AIF) and their managers are domiciled.

Under the Alternative Investment Fund Managers Directive (AIFMD), managers from a non-EEA state whose financial services regulator does not have such co-operation arrangements will not be permitted to offer or manage AIFs in the European Union after July 22, 2013.

The AIFMD requires ESMA to negotiate the memoranda of understanding prior to each EEA financial services regulator agreeing to enter into the arrangements with any of the non-EU jurisdictions that it chooses to.

ESMA has stated that some of the key elements of the cooperation arrangements include:

• The exchange of information, cross-border on-site visits and assistance in the enforcement of the respective laws; and

• Sharing of relevant information received from non-EEA authorities between EU regulators, ESMA and the European Systemic Risk Board, provided appropriate safeguards apply.

The 34 jurisdictions that have agreed to the arrangements with ESMA include: Australia, Bermuda, Brazil, BVI, Canada, Cayman Islands, Dubai, Hong Kong, Isle of Man, Israel, Jersey, Singapore, Switzerland and United States.

More information is available here.