ESMA Backs Guernsey For AIFMD Passport

Guernsey has been recommended for a 'third country' passport under the Alternative Investment Fund Managers Directive (AIFMD) by the European Securities and Markets Authority (ESMA).

The independent EU regulatory authority has assessed Guernsey, alongside 11 other non-EU jurisdictions, as part of its non-EU AIFMD passport reviews. In its final assessment, ESMA has concluded that 'there are no significant obstacles regarding investor protection, competition, market disruption and the monitoring of systemic risk impeding the application of the AIFMD passport to Guernsey'.

ESMA's advice will now be considered for approval by the European Commission, Parliament and Council before they activate the relevant provision in the AIFMD to extend the passport through a Delegated Act.