The European Commission has agreed with ESMA’s country-by-country approach on extending the passporting regime to the management and marketing of AIFs by non-EU AIFMs and to the marketing of non-EU AIFs by EU AIFMs. In a letter to ESMA, the Commission states that with regard to the advice on granting the AIFMD passport to managers and funds established in third countries, it agrees ESMA’s approach, adopted by ESMA in July 2015, is correct.  The Commission will take a decision on the passport when a sufficient number of countries have been appropriately assessed and asks ESMA to complete the assessment of the USA, Hong Kong and Singapore (the remaining countries selected for the first wave) and Japan, Canada, Isle of Man, Cayman Islands, Bermuda and Australia (the countries selected for the second wave) by 30 June 2016. The letter concludes with the Commission agreeing with ESMA's suggestion that it produces another opinion on the functioning of the passport and NPPRs once the AIFMD is fully transposed in all Member States and there is more experience on the functioning of the framework.