On 18 July 2016, the European Securities and Markets Authority
("ESMA") published its advice to the European Commission
on whether the Alternative Investment Fund Managers Directive
("AIFMD") passporting regime should be extended to the
Isle of Man and certain other non-EU countries.
AIFMD – Background
The AIFMD is an EU directive that was required to be implemented
into the national law of EU member states by 22 July 2013.
The key aim of the AIFMD is to ensure effective and consistent
regulation of both alternative investment fund managers
("AIFMs") and the management
and marketing of alternative investment funds
("AIFs") across the EU. Subject
to certain exemptions, the AIFMD is applicable to 'any legal
entity whose regular business is managing one or more alternative
investment funds'. An AIF is broadly defined in the directive
as any collective investment undertaking other than those subject
to the UCITS regime. The effect of this is that the scope of
