The European Securities and Markets Authority (ESMA) has published the letter that it received from the European Commission in respect of its advice on the application of the Alternative Investment Fund Managers Directive (AIFMD) passport to non-EU alternative investment fund managers (non-EU AIFMs) and alternative investment funds (AIFs), and ESMA’s opinion on the functioning of the passport for EU AIFMs and on the national private placement regimes (NPPRs).

The Commission’s letter makes the following points:

• as regards the advice on granting the AIFMD passport to managers and funds established in third countries, the Commission takes the view that the country-by-country approach adopted by ESMA is correct. The nature of the test set out in article 67 of the Alternative Investment Fund Managers Directive (AIFMD) may result in different outcomes depending on the regulatory and supervisory framework of the third countries in which non-EU AIFMs and funds are established;
• ESMA is invited to complete by 30 June 2016 the assessment of the following countries: the USA, Hong Kong, Singapore, Japan, Canada, Isle of Man, Cayman Islands, Bermuda and Australia;
• as regards to the enforcement of the AIFMD rules in third country jurisdictions, ESMA is invited to provide a more detailed assessment of the capacity of supervisory authorities and their track record in ensuring effective enforcement; and
• the Commission agrees that ESMA produces another opinion on the functioning of the EU passport and NPPRs once the AIFMD has been fully transposed in all Member States and there is more experience on the functioning of the framework. An updated opinion would be helpful for the planned review of the AIFMD that should start in 2017.

View ESMA publishes letter from Commission on AIFMD passport, 19 January 2016