Guernsey, Swiss Regulators Boost Fund Sector Cooperation
by Jason Gorringe, Lowtax.net, London
02 April, 2014
The Guernsey Financial Services Commission said that it recently signed a Memorandum of Understanding (MoU) with the Swiss Financial Market Supervisory Authority in respect of the distribution of investment funds to retail investors.
The MoU promotes close co-operation between the two regulators. Key initiatives include the exchange of information, cross border on-site visits, and assistance in the enforcement of each jurisdiction's laws.
One of the principal reasons for the MoU is that amendments have been made to the Swiss Collective Investment Schemes Act relating to the distribution of foreign funds to retail investors in or from Switzerland. These are now subject to the existence of a cooperation arrangement between FINMA and the financial services supervisory authority responsible for the relevant foreign funds.
The MoU with FINMA provides an effective framework between the two authorities for the exchange of information and other supervisory cooperation related to the distribution of investment funds to retail investors. It will also contribute towards reinforcing investor protection across borders as well as rendering the cross-border distribution of investment funds to retail investors more efficient.
Carl Rosumek, Director of Investment Supervision and Policy at the Guernsey Financial Services Commission, said: "The Commission has a very constructive relationship with FINMA and looks forward to working with them in the cross-border supervision of the funds industry."
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