AI Summary of Article 18
This regulation outlines the obligations of management companies seeking to undertake operations in another Member State under the freedom to provide services. Such companies must notify their home Member State's authorities regarding their intended activities, include a comprehensive programme of operations outlining their risk management processes, and ensure compliance with local and EU regulations.
Furthermore, any amendments to communicated information must be formally reported. The European Securities and Markets Authority (ESMA) has the authority to develop technical standards to ensure consistent application and harmonisation across Member States, enhancing regulatory clarity and investor protection.
Article 18
1. Any management company wishing to pursue the activities for which it has been authorised within the territory of another Member State for the first time under the freedom to provide services shall communicate the following information to the competent authorities of the management company's home Member State:
(a) the Member State within the territory of which the management company intends to operate; and
(b) a programme of operations stating the activities and services referred to in Article 6(2) and (3) envisaged which shall include a description of the risk management process put in place by the management company. It shall also include a description of the procedures and arrangements taken in accordance with Article 15.
2. The competent authorities of the management company's home Member State shall, within one month of receiving the information referred to in paragraph 1, forward it to the competent authorities of the management company's host Member State.
The competent authorities of the management company's home Member State shall also communicate details of any applicable compensation scheme intended to protect investors.