AIFMD Update: ESMA Issues Further Advice

The European Securities and Markets Authority (ESMA) today issued further advice to the European Parliament regarding the application of the Alternative Investment Fund Managers Directive (AIFMD) passport to non-EU alternative investment fund managers and alternative investment funds.

In its commentary ESMA noted that at this time, it could not give definitive advice in relation to extending the passport to the Cayman Islands, as Cayman is in the process of implementing its new regulatory regimes. However, while it did not provide definitive advice, ESMA acknowledged that Cayman has frameworks in place to address systemic risks.

This includes legislative amendments passed in August 2015 that established an opt-in regime for regulating Cayman-domiciled investment funds and managers connected to the European Union (EU).