The European and Securities Markets Authority reported that equivalency in oversight of US and European Union investment funds not involving any public offerings marketed by managers warranted granting by the European Commission of marketing passport rights to US fund managers in the EU. If granted, US fund managers would have the authority to access EU investors without complying with some national requirements under applicable law (i.e., the Alternative Investment Fund Managers Directive); however they still would most likely be subject to requirements related to capital, depositories and remuneration, among others. ESMA recommended however, that if such passport rights were granted, such benefit be limited to US funds dedicated to professional investors in the US that involve no public marketing and are not mutual funds (under the 1940 Investment Company Act). ESMA did note, however, fund managers from the EU accessing the US would likely encounter tougher regulatory barriers than US fund managers accessing the EU through a passport. (Click here for further details in the article, "ESMA Publishes Advice on Potential Extension of AIFMD Marketing Passport" in the July 22 edition of Katten Muchin Rosenman LLP's Corporate and Financial Weekly Digest.)