NPPR supervisory co-operation arrangements (MoUs)

Memorandums of Understanding (MoUs) are a pre-condition under the Alternative Investment Fund Managers Directive (AIFMD) to allow certain cross-border activities to take place. 

Supervisory cooperation arrangements are required for a full scope UK AIFM or a full scope EEA AIFM to be able to market an AIF under Regulation 57 (Article 36) and for an above-threshold non-EEA AIFM to be able to market under Regulation 59 (Article 42). 

However, supervisory cooperation arrangements are not required for the marketing of an AIF by a small non-EEA AIFM under Regulation 58. 

Our rules also require that a supervisory cooperation arrangement is in place with the relevant jurisdiction whether or not the competent authority supervises the particular entity in question.

High-risk and non-cooperative jurisdictions list

The AIFMD also requires that the third country is not listed as a ‘Non-Cooperative Country and Territory’ by the Financial Action Task Force (FATF). However, this list is no longer maintained by FATF, which instead maintains a list of ‘High-risk and non-cooperative jurisdictions’. 

Firms should therefore refer to the latest High-risk and non-cooperative jurisdictions list published by FATF, which consists of two parts:

  1. jurisdictions that have strategic anti-money laundering (AML)/ combating the financing of terrorism (CFT) deficiencies and to which counter-measures apply; and
  2. jurisdictions with strategic AML/CFT 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


MoUs 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.

EEA AIFMs must not privately place non-EEA AIFs in the UK unless the applicable MoU is in place. 

It is the responsibility of firms to check whether there is an MoU in place before applying, as not doing so may result in the failure of an application or supervision/enforcement action for breaching applicable rules.

We have signed MoUs with the organisations listed below.

ESMA has also published a list of the MoUs between EEA and non-EEA competent authorities.

Abu Dhabi Financial Services Regulatory Authority
Albanian Financial Supervisory Authority
Alberta Securities Commission
Australian Securities and Investments Commission
Autorité des marchés financiers, Québec
Bermuda Monetary Authority
Board of Governors of the Federal Reserve System, United States of America
British Columbia Securities Commission
British Virgin Islands Financial Services Commission
Capital Markets and Securities Authority of Tanzania
Capital Market Development Authority of Maldives
Capital Markets Board of Turkey
Cayman Islands Monetary Authority
Central Bank of Bahrain
Comissão de Valores Mobiliários do Brasil
Commodity Futures Trading Commission, United States of America
Conseil Déontologique des Valeurs Mobilières of Morocco
Dubai Financial Services Authority
Egyptian Financial Supervisory Authority
Financial Markets Authority of New Zealand
Financial Services Agency of Japan
Financial Services Board of South Africa
Financial Services Commission of Mauritius
Financial Supervision Commission of the Isle of Man
Guernsey Financial Services Commission
Hong Kong Securities and Futures Commission
Israel Securities Authority
Jersey Financial Services Commission
Labuan Financial Services Authority
Ministry of Agriculture, Forestry and Fisheries of Japan
Ministry of Economy, Trade and Industry of Japan
Monetary Authority of Hong Kong
Monetary Authority of Singapore
National Banking and Securities Commission of the United Mexican States
Office of the Comptroller of the Currency, United States of America
Office of the Superintendent of Financial Institutions, Canada
Ontario Securities Commission
Qatar Financial Centre Regulatory Authority
Republic of Srpska Securities Commission
Securities and Commodities Authority of the United Arab Emirates
Securities and Exchange Board of India
Securities and Exchange Commission, United States of America
Securities and Exchange Commission of Pakistan
Securities and Exchange Commission of the Republic of Macedonia, Former Yugoslav Republic of Macedonia
Securities and Exchange Commission Thailand
Securities Commission of Malaysia
Securities Commission of the Bahamas
Securities Commission of the Republic of Montenegro
Swiss Financial Market Supervisory Authority (FINMA)
State Securities Commission of Vietnam
The Financial Services Commission and The Financial Supervisory Service of Korea