Yesterday, the European Securities and Markets Authority (ESMA)
published its advice to the European Commission on extending the
AIFMD passport to non-EU managers.
ESMA's advice can be summarised as follows:
passport be extended?
Jersey, Guernsey, Switzerland, Canada, Japan
Yes, with some
Islands, Isle of Man
No assessments by ESMA
Chile, China, Egypt, Malaysia, Taiwan
The next step is for the European Commission to pass a delegated
act to extend the passport, presumably just to the five
"yes" countries at present. Technically the Commission
has three months to pass this act, but that timeline should not be
taken as gospel.
Once the act has been passed, managers from the relevant
countries will be able to market their funds into the EU using the
AIFMD passport, provided they comply with the applicable
requirements in the AIFMD.
ESMA's findings in more detail:
Jersey, Guernsey, Switzerland, Canada and
Japan: All received the green light from ESMA.
Hong Kong and Singapore: Received the green
light from ESMA regarding their AIF regimes, but ESMA hinted that
the price of being granted a third country passport might be
reciprocal access rights for UCITS (or retail) funds.
Australia: Also received a green light as long
as Australia reciprocates by extending its 'Class Order
Relief' to all EU states and not just a few.
United States: ESMA believes US managers will
still have an unfair advantage over EU managers because there would
be less onerous rules for US mangers marketing in the EU than vice
versa, in cases where there is a public offering. ESMA therefore
advises the EU to look at how to "mitigate this risk".
Back to the negotiating table then.
Bermuda and the Cayman Islands: On hold because
their regulatory regimes are currently in flux.
Isle of Man: Equivalence is currently too
difficult to judge because of "the absence of an AIFMD-like
Chile, China, Egypt, Malaysia and Taiwan: ESMA
has postponed its advice on these countries because of the absence
of memorandums of understanding with the local regulators or the
level of marketing activity from the jurisdiction is very low.
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