BVI FSC Signs Agreement with the European Securities and Markets Authority

The European Securities and Markets Authority (ESMA) has approved the co-operation agreement between the British Virgin Islands Financial Services Commission and EU securities regulators. The Memorandum of Understanding allows the BVI Mutual Fund Industry to market its products in the European Union and to EU investors. It provides for the supervision of alternative investment funds, including hedge funds, private equity funds and real estate funds.

 

Before signing the MOU with the ESMA, the Financial Services Commission had discussions with it concerning the European Union’s Alternative Investment Fund Managers (AIFMs) Directive, the draft version of which was issued by the European Commission in 2009, and which is focused on creating a comprehensive regulatory and supervisory framework as well as common regulatory standards for all European AIFMs.

 

The Memorandum of Understanding between the BVI FSC and ESMA is to a large extent based on the IOSCO Multilateral Memorandum of Understanding. The Commission has been in negotiations with ESMA since April last year.

 

It is said in the press release published by the Commission that “the MOU between the FSC and EU securities regulators is further evidence that the FSC remains committed to fulfilling its international obligations relating to information exchange and combating illicit activity that may involve the use of regulated financial services structures. In addition, it demonstrates the recognition and importance of BVI funds in the global funds industry.”

 

Managing Director/CEO of the FSC Robert Mathavious said in his comments that “the Commission looks forward to working with ESMA and the EU countries ensuring that the BVI continues its commitment to meeting its international obligations and standards.”