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In order to fulfil the requirement set out in Article 20(1) (d) of the AIFMD, a written arrangement should exist between the competent authorities of the home Member State of the AIFM or ESMA and the supervisory authorities of the undertaking to which delegation is conferred.
Where the undertaking sub-delegates any of the functions delegated to it, a written arrangement should exist between the competent authorities of the home Member State of the AIFM or ESMA and the relevant supervisory authorities of the undertaking to which sub-delegation is conferred.
With respect to the delegated functions from the entity to which functions were delegated or sub-delegated, the arrangement referred to in paragraphs 1 and 2 above should entitle the competent authorities to:
a) obtain on request the relevant information necessary to carry out their supervisory tasks as provided for in AIFMD;
b) obtain access to the documents relevant for the performance of their supervisory duties maintained in the third country;
c) have the right to request an on-site inspection on the entity to which functions were delegated or sub-delegated. The practical procedures for on-site inspections should also be detailed in the arrangement;
d) receive immediately information from the supervisory authority in the third country in the case of breach of regulations;
e) ensure that enforcement actions can be performed in cases of breach of regulations.
The third country undertaking should be deemed to satisfy the requirement under Article 20(1) (c) when it is authorised or registered for the purpose of asset management based on local criteria which are equivalent to those established under EU legislation and is effectively supervised by an independent competent authority.