+Article 78 Delegation of portfolio or risk management
---+Article 78 1.
---+Article 78 2.
---+Article 78 3.

Article 78 Delegation of portfolio or risk management

1. Overview

,
Article 78 1.
This Article shall apply where the delegation of portfolio management or risk management is concerned.
Article 78 2.

The following entities shall be deemed to be authorised or registered for the purpose of asset management and subject to supervision in accordance with point (c) of Article 20(1) of Directive 2011/61/EU:

(a) 

management companies authorised under Directive 2009/65/EC;

(b) 

investment firms authorised under Directive 2004/39/EC to perform portfolio management;

(c) 

credit institutions authorised under Directive 2006/48/EC having the authorisation to perform portfolio management under Directive 2004/39/EC;

(d) 

external AIFMs authorised under Directive 2011/61/EU;

(e) 

third country entities authorised or registered for the purpose of asset management and effectively supervised by a competent authority in those countries.
Article 78 3.

Where the delegation is conferred on a third-country undertaking the following conditions shall be fulfilled in accordance with point (d) of Article 20(1) of Directive 2011/61/EU:

(a) 

a written arrangement shall exist between the competent authorities of the home Member State of the AIFM and the supervisory authorities of the undertaking to which delegation is conferred;

(b) 

with respect to the undertaking to which delegation is conferred, the arrangement referred to in point (a) allows the competent authorities to:

(i) 

obtain on request the relevant information necessary to carry out their supervisory tasks as provided for in Directive 2011/61/EU;

(ii) 

obtain access to the documents relevant for the performance of their supervisory duties maintained in the third country;

(iii) 

carry out on-site inspections on the premises of the undertaking to which functions were delegated. The practical procedures for on-site inspections shall be detailed in the written arrangement;

(iv) 

receive as soon as possible information from the supervisory authority in the third country for the purpose of investigating apparent breaches of the requirements of Directive 2011/61/EU and its implementing measures;

(v) 

cooperate in enforcement in accordance with the national and international law applicable to the supervisory authority of the third country and the EU competent authorities in cases of breach of the requirements of Directive 2011/61/EU and its implementing measures and relevant national law.

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements

3. Related Standards

Standards