Esma’s AIFMD advice disappoints Asia’s fund centres

Author: Ashley Lee | Published: 12 Aug 2015

The European Securities and Markets Authority (Esma) issued advice on non-EU passporting under the Alternative Investment Fund Management Directive (AIFMD) late last month. Its assessment of Hong Kong and Singapore was not encouraging.

On July 30 Esma issued the long-awaited documents for fund passporting for non-EU jurisdictions. Since AIFMD’s implementation in July 2013, the absence of non-EU passports has meant that funds outside the bloc have relied on reverse solicitation or each country’s private placement regimes to reach European investors.

Esma recommended that Jersey and Guernsey be considered for a non-EU passport, as well as Switzerland as long as certain laws are passed. But the Asian jurisdictions assessed, Singapore and Hong Kong, may face delays.

"Asian countries that aren’t part...