BVI Introduces Opt-In Regime For AIFMD Compliance

Key Points

• BVI has issued regulations to supplement existing legislation regulating BVI funds and fund managers in preparation for the European Securities and Markets Authority ("ESMA") to advise the European Commission on whether the EU Alternative Investment Fund Managers' Directive ("AIFMD") passport should be extended to BVI entities
• The new regulations permit BVI open and closed ended funds and BVI fund managers to opt-in to be regulated to an EU equivalent standard to allow them to obtain an AIFMD passport
• This would allow a BVI fund to be marketed in the EU, and a BVI fund manager to market and manage funds in the EU, on a pan-EU basis

 BVI, a key international domicile for investment funds, has introduced new regulations (the "AIFMD Regulations") under its Securities and Investment Business Act, 2010 ("SIBA"). The purpose is to position BVI to receive a favourable assessment from ESMA, when it advises the European Commission on whether the AIFMD