New Delhi, Feb 19 (IANS): The Union Cabinet on Wednesday approved the proposal of Securities & Exchange Board of India (SEBI) to sign an updated Alternative Investment Fund Managers Directive (AIFMD) agreement with Financial Conduct Authority (FCA) of the UK.

An official statement said as the UK exited the European Union on January 31, 2020, FCA had informed SEBI that no transitional measures would be available if the amended agreement is not signed before the date when the UK exits the European Union (Brexit), and requested SEBI to sign an updated MoU as early as possible.

The proposal is not expected or intended to have any effect on employment in India, it added.

As per the requirement of establishing adequate supervisory cooperation arrangements between EU and non-EU authorities under the European Union Alternative Investment Fund Managers Directive (AIFMD), a bilateral MoU was signed by SEBI with securities regulators of 27-member states of European Union or the European Economic Area, including Financial Conduct Authority (FCA), United Kingdom on July 28, 2014.

"In the context of UK's proposed withdrawal from EU, FCA brought to the notice of SEBI that the existing MoU between SEBI and FCA relating to AIFMD, which is currently anchored on EU law, will no longer apply directly in the UK, and have therefore, suggested signing an updated MoU after amending the AIFMD MoU by suitably modifying it and substituting references to EU legislation with the relevant UK law," the statement said.