On 19 January 2016, ESMA published a letter it received from the European Commission relating to the application of the EU passport under the AIFMD to non-EU alternative investment fund managers (AIFMs) and alternative investment funds (AIFs). The Commissions agrees that ESMA's country-by-country approach to the AIFMD passport is correct. It adds that the nature of the test set out in Article 67 of the AIFMD may result in different outcomes depending on the regulatory and supervisory framework of the third countries in which non-EU AIFMs and funds are established. The Commission requests ESMA to:

  • Complete, by 30 June 2016, 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).
  • Provide a more detailed assessment of the capacity of supervisory authorities and their track record in ensuring effective enforcements, including in those countries assessed in the first wave of countries.
  • Provide a preliminary assessment of the expected inflow of funds by type and size into the EU from relevant third countries.

The Commission agrees with ESMA's suggestion that ESMA produce another opinion on the functioning of the passport and national private placement regimes once the AIFMD is fully transposed in all member states and there is more experience on the functioning of the framework.