EU finance ministers have reached a compromise on the EU's first set of rules to directly supervise managers of alternative investments beginning in 2013. There was a significant breakthrough in EU efforts to regulate the hedge fund industry when, on Tuesday, October 19, 2010, after months of negotiations, the UK and France resolved their disagreements over the terms in the AIFM Directive for allowing non-EU-based hedge funds to operate in EU member states (Hedge Fund Update: May–June 2010). The UK position had called for an "EU passport" for non EU-based hedge funds, while the French position had called for national governments to have the power to license hedge funds operating within their territory. The compromise reached allows for the EU-wide passport under strict controls from the new European Securities and Markets Authority (ESMA). As a result of the agreement, the third country regime will be as follows: national private placement regime for two years after implementation, and dual (private placement and passport) regimes throughout the EU until 2018. A review of the new rules will also take place four years after they come into force. The European Parliament still needs to accept the compromise. Should that occur, a final agreement is expected to take place in November.