ESMA Advice Positive On Guernsey AIFMD Passport Extension

A recommendation by the European Securities and Markets Authority (ESMA) to grant Guernsey a 'third country' passport under the Alternative Investment Fund Managers Directive (AIFMD) has been welcomed by the Island's funds sector.

In announcing its findings from the 'Call for Evidence - AIFMD passport and third country AIFMs' consultation ESMA confirmed that Guernsey had demonstrated the ability to satisfy the criteria required under AIFMD. Of the six jurisdictions assessed, ESMA concluded that "no obstacles exist to the extension of the passport to Guernsey and Jersey, while Switzerland will remove any remaining obstacles with the enactment of pending legislation. No definitive view has been reached on Hong Kong, Singapore and the USA due to concerns related to competition, regulatory issues and a lack of sufficient evidence to properly assess the relevant criteria."