AIFMD: EC Asks ESMA To Assess Cayman By June 2016

The European Commission ('EC') has responded to the advice from the European Securities and Markets Authority ('ESMA') on extension of the Alternative Investment Fund Managers Directive ('AIFMD') passport regime. It has asked that ESMA complete the third country assessments of the Cayman Islands ('Cayman') and the United States ('US') by June 2016.

AIFMD Passports and NPPRs

The AIFMD provides for the authorization, ongoing operation and transparency of Alternative Investment Funds ('AIF's) and aims to establish harmonised regulatory standards for AIF Managers ('AIFM's). An AIFM which is authorised and regulated in a European Union ('EU') Member State ('MS'), may apply for a 'passport' which will allow it to market AIFs to institutional investors in all MSs or provide management services to AIFs domiciled in other MSs. At present, and until at least 2018, Cayman investment funds can be marketed in the EU under national private placement regimes ('NPPR's).