ESMA’s latest advice concludes that no obstacles exist to extension of AIFMD passport to Guernsey and Jersey, says Andrew Whittaker (pictured), Managing Director, Ipes Guernsey…
The European Securities and Markets Authority (ESMA) has published its advice in relation to the extension of the Alternative Investment Fund Managers Directive (AIFMD) passport to non EU jurisdictions.
The ESMA advice concludes that "no obstacles exist to the extension of the passport to Guernsey and Jersey." Their advice will now be considered by the European Commission, Parliament and Council.
The AIFMD passport is already available to EU entities. Non EU Alternative Investment Fund Managers (AIFMs) and Alternative Investment Funds (AIFs) are currently subject to the EU National Private Placement Regime (NPPR). Last year ESMA issued a ‘Call to Evidence’ to consider whether to extend the AIFMD passporting regime to some non EU jurisdictions.
ESMA assessed six jurisdictions: Guernsey, Jersey, Hong Kong, Singapore, Switzerland and the United States of America (USA). The ESMA advice concludes that no obstacles exist to the extension of the AIFMD passport to Guernsey and Jersey. This advice will extend to Switzerland once pending legislation is enacted. ESMA did not reach a definitive view on Hong Kong, Singapore and the USA.
This is positive news for Guernsey and Jersey because it removes any ambiguity about whether they qualify under the AIFMD. The announcement from ESMA supports the integrity and attractiveness of the Channel Islands as a domicile for funds. We look forward to hear the final outcome from the European Commission, Parliament and Council in line with the timescales set out by the AIFMD.
