ESMA Advice On Extension Of Funds Passport: What Next?

On 18 July 2016, the European Securities Markets Authority ("ESMA") issued its advice on the extension of the alternative investment fund managers' directive ("AIFMD") passport to investment fund managers and investment funds based in 12 non-EU countries, including Bermuda, the Cayman Islands, Guernsey and Jersey (the "Opinion").

In the Opinion, ESMA has confirmed that, in this second round of assessments, 2 additional jurisdictions (Canada and Japan) have been added to the original 3 jurisdictions (Guernsey, Jersey and Switzerland) deemed to satisfy the threshold of no significant obstacles impeding the application of the AIFMD passport. The assessment of the remaining 7 jurisdictions is still under consideration; 4 of these jurisdictions may need to address market access equivalency concerns raised by ESMA and ESMA has not yet had sufficient time to complete its review on the other 3 remaining jurisdictions (including Bermuda and the Cayman Islands).