In an effort to harmonize investor protection across the EU and ensure effective market competition, a framework has been established for financial institutions, funds and market infrastructure established outside the EU to access European investors and markets. Under certain key pieces of current and proposed EU legislation, such access generally will require the determination of the “equivalence” of the local regulatory system governing the non-EU institution. Further, co-operation agreements may need to be put in place between the third country and a EU member state or ESMA. This note sets out the requirements for different types of market participants to gain access to the EU markets.View full memo, Extraterritoriality Revisited: Access to the European Markets by Financial Institutions, Funds and Others from Outside Europe
