The FCA has updated its webpage on the national private placement regime under the Alternative Investment Fund Managers Directive (AIFMD).

The webpage notes that a Memorandum of Understanding on supervisory cooperation arrangements is a pre-condition under the AIFMD to allowing certain cross-border activities to take place, and are designed to help EEA regulators supervise compliance with the AIFMD requirements when a non-EEA entity is involved in the management or marketing of an alternative investment fund (AIF) within the EEA or where the AIF is established in a non-EEA jurisdiction.

In addition to this condition, the AIFMD requires that the third country is not listed as a ‘Non-Cooperative Country and Territory’ by the Financial Action Task Force (FATF). However, the Non-Cooperative Country and Territory list is no longer maintained by FATF which instead maintains a list of ‘High-risk and non-cooperative jurisdictions’. This list comprises of two parts, covering:

  • jurisdictions that have strategic anti-money laundering / combating the financing of terrorism (AML/CTF) deficiencies and to which counter-measures apply; and
  • jurisdictions with strategic AML/CTF deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies.

The FCA states that the reference to ‘Non-Cooperative Country and Territory’ should be interpreted as a reference to a jurisdiction that appears in either part of the FATF list of ‘High-risk and non-cooperative jurisdictions’.

View National private placement regime, 9 December 2013