AIFMD uncertainty lingers over passporting, NPPRs

Author: Tom Young | Published: 16 Dec 2015

Non-EU fund managers are facing uncertainty over both the roadmap for passporting under the Alternative Investment Fund Managers Directive (AIFMD) and the status of its private placement workaround.

Research by Cerulli Associates has revealed some alternative fund managers with funds domiciled outside of the EU are not targeting European investors due to AIFMD difficulties. It's prompted counsel to think about the next steps in the Directive’s progress.

Attention has centred on the likelihood of non-EU markets such as Hong Kong, Singapore and the US amending their funds framework sufficiently to receive an AIFMD passport since the European Securities and Markets Authority’s (Esma) July 30 announcement.

At that time the regulator recommended that Jersey and Guernsey, and following that Switzerland, be considered for a non-EU passport. Hong Kong, Singapore and the US appear further away.

Counsel don’t believe US authorities will adapt their framework to obtain the passport....