The Bermuda Monetary Authority (the Authority) confirmed has confirmed that it has signed a Memorandum of Understanding (MoU) with Germany’s financial regulator, the Federal Financial Supervisory Authority (BaFin), in relation to the European Union’s Alternative Investment Funds Managers Directive (AIFMD).

Asset management expert Jessel Mendes, a partner at EY in Bermuda, welcomed the news as “another important step in enhancing Bermuda’s attractiveness”.

The MoU, the 27th accord concluded with the Authority under the AIFMD, provides for mutual assistance between supervising managers of alternative investment funds who operate on a cross-border basis in both jurisdictions.

In effect, the agreement will allow Bermuda-based fund managers to market their products in Germany.

Commenting on the signing, Jeremy Cox, CEO of the Authority said, “We are pleased to finalise our agreement with BaFin, the integrated financial services supervisor of Europe’s largest economy.

“This is the result of a concerted effort by an interdepartmental team led by Shauna MacKenzie, our director of Policy, Legal and Enforcement and marks another milestone in the Authority’s AIFMD-related initiatives.”

“Germany is an important market for Bermuda, and this MoU will ensure that Bermuda fund managers have the opportunity to participate in the German market with the appropriate level of supervisory oversight,” Mr. Cox said.

“Marking this milestone also serves to reinforce Bermuda’s competitive position as a jurisdiction that can accommodate a full spectrum of fund related activity within an internationally recognised regulatory framework.”

Mr Mendes, who has played a prominent role in Bermuda’s Asset Management Taskforce, welcomed the agreement.

“Bermuda’s asset management industry continues to attract global interest,” Mr Mendes said.

“Opportunities are being identified, pursued and capitalised based on collective efforts of local industry participants, Government, and the BMA.

“It is important that we ensure Bermuda continues to be a viable option in the global asset management arena. EY has been having a lot of dialogue in recent months with fund managers on AIFMD.

“Given AIFMD seeks to establish a harmonised regulatory framework for firms that manage and/or market alternative funds in the EU, this agreement with Germany’s financial regulator is another important step in enhancing Bermuda’s attractiveness.”