Esma recommends AIFMD passport extension for second time

Switzerland and Guernsey are among countries that have again been recommended for the right to ‘passport’ their alternative funds to EU investors.

The European Securities and Markets Authority (Esma) originally said last year there were no obstacles for the two jurisdictions, along with Jersey, to gain the passport, but the European Commission wanted more details.

Jersey has also gained approval from Esma – as have Canada and Japan.

The approval essentially means the alternative investment fund regimes of the non-EU jurisdictions are equivalent to the EU’s own standards under the Alternative Investment Fund Managers Directive (AIFMD).

Last July, when Esma approved Guernsey, Jersey and Switzerland, the European Commission deferred a decision and asked Esma for more information on other countries – including the US and Hong Kong – and further details on regulatory regimes and expected fund flows.

Esma’s recommendation that the first five countries get the passport still has to gain approval from the Commission, the European Parliament and European Council.

Lyndon Trott, Guernsey Finance chairman and Guernsey’s deputy chief minister, said: “While there is still a further administrative stage of the process to go through, this is a positive and encouraging development for Guernsey as a centre of excellence for private equity and fund administration. These are businesses that have real substance on the island and form an important part of our economy.”

Other countries are still being considered for passport approval. The Alternative Investment Management Association has previously said more jurisdictions outside the EU should be considered.

©2016 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST