Alternative investment funds (AIFs) from the US, Hong Kong and Singapore will not be granted a licence to market their funds in the EU for the time being.
The European Securities and Markets Authority (Esma) has delayed the granting of the so-called marketing “passport” for alternative investment funds to these countries.
However, AIFs from Guersney, Jersey and Switzerland will be allowed to market into the EU and Esma has requested the European Commission to draw-up regulation.
Esma has today published its opinion
on the extension of the passport under the Alternative Investment Fund Managers Directive (AIFMD), which was delayed
from last week.
The reasons for not extending the licence to the US, Hong Kong and Singapore, appear to be centred on competition.
Esma considered investor protection, competition, market disruption and the monitoring of systemic risk when considering extending the EU passport.
Esma says the decision to extend the AIFMD passport to the US should be delayed until better conditions of market access to the US are granted by the US authorities for EU AIFs and AIF managers.
There is also uncertainty as to whether all EU AIF managers benefit from the same market access conditions in Hong Kong, and whether they would benefit from the same market conditions as Hong Kong managers in the EU if Hong Kong were to be granted the AIFMD passport, says Esma.
Esma says there was not enough evidence to make a decision on Singapore.
The Jersey Financial Services Commission has welcomed the decision.
Esma is also to consider granting the passport to other countries.
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