On 13 October 2015, the European Securities and Markets Authority (ESMA) published a statement by Steven Maijoor, ESMA Chair, to the Economic and Monetary Affairs Committee (ECON) of the European Parliament on ESMA's ongoing work on the extension of the passport under the Alternative Investment Fund Managers Directive (AIFMD) to non-EU alternative investment fund managers (AIFMs).
Mr Maijoor looked at the opinion on the functioning of the EU passport and the national private placement regimes (NPPRs) (discussed in our July edition of the Front Page). ESMA assessed six jurisdictions – Guernsey, Hong Kong, Jersey, Singapore, Switzerland and USA –and concluded that no obstacles exist to the extension of the passport to Guernsey and Jersey, while Switzerland would remove any remaining obstacles with the enactment of pending legislation. No definitive view was reached on the other three jurisdictions.
In his statement, Mr Maijoor states that the next steps for ESMA in the short term are to:
- Continue its assessment of Hong Kong, Singapore and USA with a view to reaching a definitive conclusion on whether to extend the passport.
- Start to assess a second group of non-EU jurisdictions: Australia, Canada, Japan, the Cayman Islands, the Isle of Man and Bermuda.
- Establish the framework which will be required if the passport is extended to one or more non-EU countries. This will involve preparing for ESMA's role in the functioning of the passporting system and strengthening supervisory co-operation.