The European Securities and Markets Authority (“ESMA”) published further advice to the European Parliament, Council and Commission on the extension of the AIFMD passport for non-EU jurisdictions on 18 July 2016.

Key points:

- No significant obstacles impede the application of the passport to Canada, Guernsey, Hong Kong, Japan, Jersey, Singapore or Switzerland;

- Market disruption and competition are seen to be obstacles to extending the AIFMD passport to the United States, though ESMA has suggested three options that could modify the application of the AIFMD passport to certain types of funds to overcome these;

- Investor protection is seen to be an obstacle for both Bermuda and the Cayman Islands, although this is mainly due to the legislative changes that will create an AIFMD compatible regime in these countries not yet being in force...