Joint Statement on MMoU

Today the European Securities Markets Authority (ESMA) and the UK Financial Conduct Authority (FCA) published a Multilateral Memorandum of Understanding (MMoU) on the consultation, cooperation and the exchange of information between each of the EEA competent authorities and the FCA.

Invest Europe and the British Private Equity & Venture Capital Association (BVCA) jointly welcome the commitment made by UK and EU competent authorities to cooperate and exchange information in the future. As we have stated in our mutually agreed position, the private equity and venture capital industry is global in its approach to fundraising, sourcing new deals, working and investing. A coherent approach to our sectors’ regulatory environment, particularly across the British Channel, is therefore fundamental.

As such we find it opportune that the MMoU, which covers entities such as asset management companies, including private equity and venture capital firms, will not supersede applicable legislation and will not limit the use of existing mechanisms of crucial importance to our inherently cross-border industry.

Eric de Montgolfier, Invest Europe CEO, stressed that “close coordination between competent authorities and, ultimately, consistent supervision is needed to ensure that private equity and venture capital managers on both sides of the Channel remain able to operate cross-border, including by using delegation arrangements as is permitted under Article 20 AIFMD”. Michael Moore, the BVCA Director-General, noted “cross-border arrangements, including advisory and delegation arrangements, facilitate fund managers’ and investors’ access to relevant investment professionals and portfolio management expertise. These arrangements remain very important for the private equity and venture capital industry, which operates on a cross-border basis”.

Invest Europe and the BVCA will remain at the disposal of national competent authorities and ESMA in case they wish to receive any further information about the way our industry operates.

The MMoU is available here​.