Hong Kong’s Securities and Futures Commission has entered into memoranda of understanding (MOUs) with the competent authorities of the European Union and European Economic Area countries, concerning consultation, cooperation and the exchange of information related to the supervision of alternative investment fund managers (AIFM).
The MOUs are required by the EU Alternative Investment Fund Managers Directive (AIFMD), and are in identical terms and conditions with all of the countries. They are deemed to have come into effect from July 22, 2013.
The AIFMD MOUs provide a framework for cooperation and mutual assistance in the supervision and oversight of AIFM that operate on a cross-border basis, and for the exchange of information and cross-border on-site visits for supervisory and enforcement purposes.
The existence of cooperation arrangements between the EU and non-EU authorities is a precondition of the AIFMD for allowing managers from third countries, such as Hong Kong, to have access to EU markets or to perform fund management by delegation from EU managers.
The cross-border marketing of alternative investment funds to professional investors between jurisdictions is also subject to the non-EU jurisdiction not being listed as a non-cooperative jurisdiction by the Financial Action Task Force and having co-operation agreements in place with EU member states regarding the exchange of information on tax matters.