AIFMD passports endanger national PP regimes

Author: Ashley Lee | Published: 12 Aug 2015

The introduction of a non-EU passport could remove national private placement regimes (NPPRs) as an option for non-EU fund managers looking to market in the EU.

Since the Alternative Investment Fund Manager Directive (AIFMD) was introduced, non-EU funds have found it increasingly difficult to access EU investors. Potential investors must invest through NPPRs or reverse solicitation – a notoriously difficult concept.

On July 30 the European Securities Market Authority (Esma) released advice and its opinions for non-EU passports under AIFMD. According to the directive, NPPRs may be abolished from the fourth quarter of 2018. But these assessments could allow national...