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MiFID - Outsourcing the portfolio management of non-professional clients

List of the third country supervisory authorities with whom a Memorandum of Understanding has been signed, within the meaning of Article 22 of the CBFA Regulation on organizational requirements for institutions that provide investment services

As part of on the one hand the transposition of Article 15 (5) of MiFID level 2 Directive 2006/73 of 10 August 2006, and on the other hand the CBFA Regulation of 5 June 2007 (Règlement de la CBFA du 5 juin 2007 relatif aux règles organisationnelles applicables aux établissements fournissant des services d'investissement / Reglement van de CBFA van 5 juni 2007 betreffende organisatorische voorschriften voor instellingen die beleggingsdiensten verstrekken) implementing said directive, the CBFA must publish a list of the third-country supervisory authorities (i.e. supervisory authorities in countries that do not belong to the European Economic Area) with which it has concluded a memorandum of understanding within the meaning of Article 22 of said regulation. In accordance with the above-mentioned Article 22, institutions wishing to externalize retail portfolio management to a third-country service provider can only do so if the following two conditions are met:

  • The service provider must in its home country be duly authorized or registered for such services and be subject to prudential supervision;
  • an adequate memorandum of understanding must exist between the CBFA and the authority supervising the service provider.

The CBFA has concluded an adequate memorandum of understanding within the meaning of the above-mentioned Article 22 with the following third-country supervisory authorities:

  • Alberta Securities Commission
  • Australian Securities and Investments Commission
  • Bermuda Monetary Authority
  • British Columbia Securities Commission
  • Financial Services Commission of the British Virgin Islands
  • China Securities Regulatory Commission
  • Dubai Financial Services Authority
  • Securities and Futures Commission of Hong Kong
  • Securities and Exchange Board of India
  • Financial Supervision Commission of the Isle of Man
  • Israel Securities Authority
  • Jersey Financial Services Commission
  • Securities Commission of Malaysia
  • Comisión Nacional Bancaria y de Valores of Mexico
  • Commission de contrôle de la gestion de portefeuilles et des activités boursières assimilées of Monaco
  • Securities Commission of New Zealand
  • Securities and Exchange Commission of Nigeria
  • Ontario Securities Commission
  • Autorité des marchés financiers of Quebec
  • Monetary Authority of Singapore
  • Financial Services Board of South Africa
  • Securities and Exchange Commission of Sri Lanka
  • Commission fédérale des banques of Switzerland
  • Capital Markets Board of Turkey
  • Commodity Futures Trading Commission of the United States of America
  • Securities and Exchange Commission of the United States of America

The list above was compiled on the basis of the bilateral memoranda of understanding concluded by the CBFA with a number of supervisory authorities, as well as on the basis of the IOSCO Multilateral Memorandum of Understanding (“IOSCO MOU”). Because new supervisory authorities regularly join the IOSCO MOU, there may be temporary discrepancies between the list as published by the CBFA and the list of signatories of the IOSCO MOU. Since the IOSCO MOU is recognized by the CBFA as being a valid memorandum of understanding within the meaning of Article 22 of the above-mentioned CBFA regulation of 5 June 2007, the CBFA refers anyone interested in the latest update to the list of signatories of the IOSCO MOU as presented in annexe A to said MOU on www.iosco.org. It should be noted that the supervisory authorities listed in annexe B to the IOSCO MOU are not eligible for application of Article 22 of the CBFA Regulation of 5 June 2007.