AI Summary of Article 50 Obligation to cooperate
The competent authorities of EU Member States are mandated to collaborate with each other, as well as with ESMA and the ESRB, to uphold the provisions of this Directive and to exercise their regulatory powers effectively. This cooperation extends to sharing pertinent information immediately to promote robust oversight of Alternative Investment Fund Managers (AIFMs), irrespective of the local regulatory frameworks.
Moreover, the Directive stipulates that Member States must facilitate this cooperation by ensuring that appropriate arrangements are in place. In instances where there are suspicions of non-compliance by AIFMs, authorities must notify relevant counterparts and ESMA, fostering a proactive approach to maintaining financial system stability and investor protection.
Article 50 Obligation to cooperate
1. The competent authorities of the Member States shall cooperate with each other and with ESMA and the ESRB whenever necessary for the purpose of carrying out their duties under this Directive or of exercising their powers under this Directive or under national law.
2. Member States shall facilitate the cooperation provided for in this Section.
3. Competent authorities shall use their powers for the purpose of cooperation, even in cases where the conduct under investigation does not constitute an infringement of any regulation in force in their own Member State.
4. The competent authorities of the Member States shall immediately supply one another and ESMA with the information required for the purposes of carrying out their duties under this Directive.