Member News, Uncategorized

ESMA Issues Opinion on European Passport Extension

Further to recent briefings, ESMA has today published its advice in relation to the application of the Passport to non-EU AIFMs and AIFs (“Advice”) together with its opinion on the functioning of the passport for EU AIFMs and the national private placement regimes (“NPPRs”) (“Opinion”). The Advice and Opinion, required under AIFMD, will now be considered by the European Commission, Parliament and Council.

Regarding the advice on the potential extension of the passport, ESMA opted for a country-by-country assessment to allow for a distinction to be made between the different situations of non-EU countries with respect to the aspects that ESMA has to consider it is assessment.

In the advices issued today, ESMA assessed six jurisdictions (Guernsey, Hong Kong, Jersey, Singapore, Switzerland and the United States of America), excluding the Cayman Islands from its assessment as had been widely expected. However, in a positive note for those jurisdictions not considered in the initial advices, ESMA has stated that it intends to continue its assessments until it has provided advice on all the non-EU countries that it considers relevant for the purposes of the extension of the Passport under Article 67 of AIFMD.

For a full analysis in respect of this development, click here

Compliments of Dillon Eustace, a member of the EACCNY