Most Read Contributor in Cayman Islands, September 2016
The European Securities and Markets Authority (ESMA) today
issued its initial set of recommended countries for the
EU's Alternative Investment Fund Managers Directive (AIFMD)
Of the more than 40 jurisdictions that ESMA is expected to
assess in relation to the passport extension, to date it has
'The Advice concludes that no obstacles exist to the
extension of the passport to Guernsey and Jersey, while Switzerland
will remove any remaining obstacles with the enactment of pending
legislation. No definitive view has been reached on the other three
jurisdictions due to concerns related to competition, regulatory
issues and a lack of sufficient evidence to properly assess the
relevant criteria', ESMA's announcement reads.
Prior to activating the relevant provision in the AIFMD
extending the passport to these jurisdictions, ESMA noted that the
European Commission, Parliament and Council 'may wish to
consider waiting until ESMA has delivered positive advice on a
sufficient number of non-EU countries, before introducing the
passport in order to avoid any adverse market impact that a
decision to extend the passport to only a few non-EU countries
ESMA also 'aims to finalise the assessments of Hong Kong,
Singapore and the USA as soon as practicable and to assess further
groups of non-EU countries until it has provided advice on all the
non-EU countries that it considers should be included in the
extension of the passport'.
In Cayman, Minister of Financial Services Wayne Panton noted
that Cayman's Legislative Assembly will consider amendments in
August that will facilitate the extension of the AIFMD
'In our 10 July advisory to the financial services
industry, the Ministry outlined two amendment bills that will
establish an opt-in regime for regulating Cayman-domiciled
investment funds and managers connected to the European Union
(EU)', he said. 'We expect this will satisfy ESMA
requirements and strongly position us for a positive
He also noted that ESMA's advice that the European
Commission, Parliament and Council wait for a sufficient number of
recommendations before introducing the passport is 'eminently
fair and appropriate'.
Cayman's investment funds currently are marketed in the EU
under national private placement regimes (NPPRs). The NPPR and
passport regimes will coexist until at least 2018, by which time
ESMA will have decided, and acted upon, whether or not the passport
regime should entirely displace NPPRs.
Minister Panton acknowledged that through AIFMD, Cayman intends
to strengthen and expand its EU presence. 'We are a global
leader in investment funds, and we intend to build on our market
dominance with our new AIFMD regime as the platform upon which
Cayman will pursue further growth in our share of the EU's
investment funds sector'.
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On the 9 September 2016 the MFSA issued feedback to its consultation of the 1 April 2016 in relation to intra-group loans.
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