The European Securities and Markets Authority (ESMA) has issued
its advice to the European Commission, Parliament and Council in
relation to the application of the AIFMD passport to non-EU
Alternative Investment Fund Managers (AIFMs) and non-EU Alternative
Investment Funds (AIFs). Among the group of non-EU
jurisdictions assessed by ESMA (comprising Guernsey, Hong Kong,
Jersey, Singapore, Switzerland and the United States of America),
Jersey and Guernsey are the only two in relation to which ESMA
positively concludes that "no obstacles exist to the extension
of the passport".
The six jurisdictions were selected based on factors including
the amount of activity already being carried out by entities in
these countries under the national private placement regimes
(NPPRs), EU national authorities' knowledge and experience of
dealing with their counterparts and the efforts by stakeholders in
these countries to engage with ESMA's processes.
The advice is a welcome endorsement of the work undertaken in
Jersey and Guernsey to make the jurisdictions as attractive as
possible as domiciles both for funds and fund managers, following
the implementation of the AIFMD and of the engagement of the
Islands' authorities with their counterparts at ESMA.
Many Jersey and Guernsey AIFMs and AIFs have taken advantage of
NPPRs, largely meaning that it has been "business as
usual" for funds marketed to EU investors.
Whilst marketing under NPPRs will continue to be an attractive
option in many cases, should the AIFMD passport be activated:
EU AIFMs would be able to market Jersey or Guernsey AIFs;
Jersey and Guernsey AIFMs would be able to apply for full
authorisation under the AIFMD to allow them to market Jersey and
Guernsey AIFs and also EU AIFs,
throughout the EU using the AIFMD marketing passport rather than
having to comply with NPPRs.
The European Commission, Parliament and Council now have three
months to consider whether to activate the relevant provisions of
the AIFMD extending the passport to Jersey and Guernsey through a
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).