A few days ago, ESMA has given the green light to a co-operation agreement signed by the Brazilian Comissão de Valores Mobiliários (CVM) and the EU securities regulators. The agreements cover a number of investment vehicles, such as alternative investment funds, including hedge funds, private equity and real estate funds.
The agreement provides for the exchange of information, puts in place a mechanism for cross-border on-site visits and more importantly, caters for mutual assistance in the enforcement of supervisory laws. The remit of this agreement covers Brazilian AIFMs that manage or market AIFs in the EU. In line with the reciprocity that underlies this agreement, it also applies to EU AIFMs that manage or market AIFs in Brazil.
This agreement is quite significant in the light of the fact that the Alternative Investment Fund Management Directive stipulates that funds from a non-EU country whose securities regulator does not have such co-operation arrangements cannot market or manage AIFs in the EU
