The Alternative Investment Fund Managers Directive (AIFMD) initially was only available to EU countries, but subsequent to vigorous assessment a ‘third country’ passport is still being considered for a further twelve non-EU entities.
We have already previously reported on Guernsey and Jersey being recommended for this and the amendments that Guernsey made to its regulations in order to accommodate and offer these funds.
The question remains will The Cayman Islands be next to receive this recommendation. There has been much hype over the last year regarding The Cayman Islands confidence over receiving this, however it is still yet to materialise.
On the 19 July 2016 the European Securities and Market Authority (‘ESMA’), the authority responsible for these assessments, delivered its latest recommendations regarding the extension of this to non-EEA jurisdictions. In relation to The Cayman Islands ESMA have stated that although there are no significant obstacles to granting this, it will not complete its assessment until the new AIFMD regimes and related steps have been implemented. It is reported that this regime is ready to be enacted imminently and therefore the application will soon be finalised and it is hoped that ESMA will assess the Cayman Islands again in the not too distant future.
In the meantime funds based in the Cayman Islands will continue to be able to be marketed in the EU under the relevant National Private Placement Regimes (‘NPPRs’) until 2018 at which time it will be considered whether the NPPRs will continue or not.