AIFMD: EU Commission invites ESMA to carry out further work on passport

The EU Commission has written to the European Securities and Markets Authority (ESMA) regarding ESMA's opinion and advice on the Alternative Investment Fund Managers Directive (AIFMD) passport.

In July 2015, ESMA sent the Commission, EU Parliament and EU Council its advice on the application of the AIFMD passport to non-EU alternative investment fund managers (AIFMs) and alternative investment funds (AIFs) and its opinion on the functioning of the passport for EU AIFMs and on the national private placement regimes (NPPRs).

The Commission supports ESMA's approach of analysing the grant of the AIFMD passport to managers and funds on a country-by-country basis, and asks ESMA to complete by 30 June 2016:

• the assessment of the USA, Hong Kong and Singapore, which were selected for the first wave of assessments but for which to date no advice has been provided; and
   
• the assessment of a further six jurisdictions: Japan, Canada, Isle of Man, Cayman Islands, Bermuda and Australia.
   

With regard to third country enforcement of AIFMD rules, the Commission also invites ESMA to provide a more detailed assessment of the capacity of supervisory authorities and their track record in ensuring effective enforcement, and a preliminary assessment of the expected inflow of funds by type and size into the EU from relevant third countries.

The EU Commission welcomes ESMA's suggestion of another opinion on the functioning of the EU passport and NPPRs once the AIFMD has been transposed in all Member States, and suggests that it would be helpful for the opinion to be available prior to the planned review of the AIFMD in 2017.