Regulatory Alerts2014-02-10
Guidance Notice on Cooperation Agreements between BaFin and Third Country Authorities under the AIFM Directive
The Federal Financial Supervisory Authority (BaFin) requires foreign alternative investment fund managers and domestic management companies to establish bilateral Memoranda of Understanding with third-country supervisory authorities before conducting cross-border business under the German Investment Code. BaFin has already executed MoUs with numerous jurisdictions and advises firms to proactively coordinate with both its own offices and foreign regulators when outsourcing risk or portfolio management, managing non-EU funds, or marketing alternative investment funds domestically. By confirming planned third-country transactions in advance, market participants can secure timely regulatory approvals and avoid operational delays.
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