Secondly, the manager requires a cooperation agreement for an EU manager to manage a non-Eu fund, which means that it is essential for structures in which a Luxembourg (or other) EU manager wishes to continue to manage (or continue to manage) a UK fund for limited partnerships. Similarly, UK law (as suitable for hard Brexit) will only allow a UK-regulated manager to manage funds domiciled in countries where the regulator has signed a protocol with the ACF, which means that it was essential that cooperation agreements be signed to allow UK managers to continue to manage their Luxembourg funds. , a structure now very common. Finally, many UK fund managers will want to use National Private Investment Schemes (NPPRs) in the future so that their funds can be marketed in the EU without a passport. EU leaders will also want to market their EU funds to the UK and possibly to their UK funds in the EU. Cooperation agreements are needed in each of these scenarios. In addition, the first consultation of the AEMF responded to requests for opinions to further clarify responsibilities within the framework of cooperation agreements between EU regulators and their partners in third countries, in particular the precise mission of each regulatory authority, given the constraints of having to act within their respective national legal frameworks. However, the AEMF merely said that the allocation of powers was being dealt with in the negotiations on cooperation agreements and that there were therefore no further details available at this time. In accordance with the final recommendations of the ESMA, the Level 2 regulation therefore imposes the following requirements. Cooperation agreements: prior to the publication of AIFMD in the Journal of the European Union in July 2011, the Commission sent a request to the European Committee of Securities Market Regulators (predecessor of the AEMF) to request assistance with the content of the enforcement measures of the directive, namely the Phase 2 regulation. In response to this request, the AEMF published two consultations in the summer of 2011 on the draft recommendation of the ESMA on these measures, covering the various issues raised by the directive from third countries, including the required monitoring arrangements. The manager establishes a general framework for the regulation and monitoring of these third-country companies, including the requirements for EU and third country regulators, to establish cooperation and exchange of information.
The operational details of these provisions were presented in the European Commission`s Delegate Regulation No. 2 (“Commission”) of Level 2 (the “Level 2 Regulation”) of December 2013. The established cooperation agreements were to be concluded on the manager`s implementation date of July 22, 2013. The monitoring cooperation agreements are concluded in the form of Memorandums of Understanding (MoUs), the content of which is consistent with the IOSCO principles for cross-border surveillance cooperation in 2010 and the general terms and conditions of IOSCO.