The European Securities and Markets Authority (ESMA) has published its advice in relation to the extension of the Alternative Investment Fund Managers Directive (AIFMD) passport to non EU jurisdictions.
The ESMA advice concludes that "no obstacles exist to the extension of the passport to Guernsey and Jersey." Their advice will now be considered by the European Commission, Parliament and Council.
The AIFMD passport is already available to EU entities. Non EU Alternative Investment Fund Managers (AIFMs) and Alternative Investment Funds (AIFs) are currently subject to the EU National Private Placement Regime (NPPR). Last year ESMA issued a ‘Call to Evidence’ to consider whether to extend the AIFMD passporting regime to some non EU jurisdictions.
ESMA assessed six jurisdictions: Guernsey, Jersey, Hong Kong, Singapore, Switzerland and the United States of America (USA). The ESMA advice concludes that no obstacles exist to the extension of the AIFMD passport to Guernsey and Jersey. This advice will extend to Switzerland once pending legislation is enacted. ESMA did not reach a definitive view on Hong Kong, Singapore and the USA.
Andrew Whittaker, who is Managing Director of Ipes Guernsey, Chairman of the British Venture and Capital Association (BVCA) Channel Islands Working Group, and Chairman of the Guernsey Investment Funds Association (GIFA), commented that, "this is positive news for Guernsey and Jersey because it removes any ambiguity about whether we qualify under the AIFMD. The announcement from ESMA this morning supports the integrity and attractiveness of the Channel Islands as a domicile for funds. We look forward to hear the final outcome from the European Commission, Parliament and Council in line with the timescales set out by the AIFMD."
You can read more about ESMA and AIFMD in our Technical Library.