Hanfa signs fifth international Memorandum of Understanding concerning alternative investment funds outside EU

Published: 23. February 2021.

The Croatian Financial Services Supervisory Agency (Hanfa) and the Astana Financial Services Authority (AFSA), a regulator for the Astana International Financial Centre, from the Republic of Kazakhstan have concluded a Memorandum of Understanding (MoU) concerning consultation, cooperation and exchange of information with regard to the supervision of entities under the Alternative Investment Fund Managers Directive (AIFMD). The MoU was signed by Ante Žigman, President of Hanfa Board and Mukhtar Bubeyev, Chief Executive Officer of AFSA.

"Even in this challenging time during the pandemic Hanfa continued its international activities and found a new partner in AFSA, with whom it established a framework for co-operation encouraging cross-border investment flows in the field of investment funds. I am convinced that cooperation between our two institutions, which will cover the area of supervision, with a focus on consumer protection, fostering financial and market integrity and maintaining confidence in the stability of the system, will help remove obstacles to cross-border investments, facilitate investment flows and create additional opportunities for investors and the investment fund industry," said A. Žigman on the occasion of signing of the MoU.

“We are delighted to have signed this MoU with the Croatian Financial Services Supervisory Agency and we look forward to building a long-term relationship between our organisations. This agreement will allow mutual assistance in the supervision of Managers of alternative investment funds that operate on a cross-border basis. It will promote stable and transparent financial services in our respective jurisdictions as well as contribute to boost investment activities and strengthen investor confidence of both countries,” said Mukhtar Bubeyev, Chief Executive Officer, Astana Financial Services Authority.

In view of growing globalization of the world’s financial markets and the increase in cross-border operations and activities of alternative investment fund managers, this MoU defines cooperation between the two institutions regarding the supervision of alternative investment fund managers and the supervision of their intermediaries and depositaries performing cross-border activities in the jurisdictions that are signatories to this MoU, i.e. in Croatia and AIFC in Kazakhstan.

At the end of 2019, Hanfa commenced negotiations with non-EU jurisdictions on signing the Memoranda of Understanding under the AIFMD and has so far signed five such MoUs. Apart from the Astana Financial Services Supervisory Authority, in 2020 Hanfa signed MoUs with the Abu Dhabi Global Market Financial Services Regulatory Authority, the Guernsey Financial Services Commission, the Financial Services Agency of Japan, and in 2019 with the Qatar Financial Centre Regulatory Authority. A MoU allows fund managers in non-EU jurisdictions to manage alternative investment funds (including hedge funds, private equity funds and real estate funds) and to offer their units to professional investors in the European Economic Area under the AIFMD.