Financial regulation practice
Maijoor speech gives indication of European work on
AIFMD passport extension and marketing rules
ESMA has today published a speech by Steven Maijoor given to the ECOFIN
committee of the European Parliament. Mr Maijoor's speech follows the
publication on 30 July 2015 of (i) ESMA's advice on the application of the AIFMD
passport to non-EU AIFMs and AIFs (Advice) and (ii) ESMA's opinion on the
functioning of the AIFMD EU passport and of the National Private Placement
Regimes (Opinion), which we covered in our Ashurst briefing here. Jake Green,
partner in the financial regulation practice, also gave his views on the Advice and
Opinion in our briefing here.
It is a brief speech by ESMA's Chairman with much justification on why the ESMA
Advice and Opinion are not as comprehensive as we would have hoped (he cites,
for example, the delayed level 2 measures leading to an AIFMD that was only
running 'on the ground' in summer 2014 which in turn meant a limited period to
assess its impact). However, he does give some (often cryptic) indications on
what we can expect as a follow up which fund managers, and their clients, may
find interesting.
On the different approaches to marketing in the EU, which was discussed in the
Opinion, Mr Maijoor says that, "[W]e did identify a few issues that we felt merited
follow-up work, including some divergent approaches across Member States with
respect to marketing rules. In the coming months we will look at how we
can promote a common approach on these issues." (Our emphasis
added.) This is good news for fund managers who struggle on a daily basis with
the divergent marketing rules in different EU countries.
One of the key points of the Advice was ESMA's recommendation to extend the
current AIFMD passport to Jersey, Guernsey and Switzerland but not the United
States, Singapore and Hong Kong. Clearly this was welcome news for those
jurisdictions deemed compatible with the AIFMD passport regime. However, that
celebration may need to be tempered. Mr Maijoor noted in his speech that, "[W]e
also highlighted in our advice that the EU institutions may wish to consider
waiting until ESMA has delivered positive advice on a larger number of
non-EU countries before triggering the relevant legislative procedures,
taking into account such factors as the potential impact on the market that a
decision to extend the passport might have." (Our emphasis added.) This
suggests that the extension may not come as quickly as fund managers may have
hoped. Certainly we foresee some intensive lobbying at European Parliament and
Commission level by representatives from those countries to counter this
suggestion.
For the United States, there may be more news sooner than expected. Mr Maijoor
said that, "Looking ahead to the next steps, we see three key areas on which
further work by ESMA is required in the short term. First, we will continue our
assessment of Hong Kong, Singapore and the US with a view to reaching a
definitive conclusion on whether to extend the passport to those
countries..." However, here at Ashurst, we won't be holding our breath…
DISCLAIMER
This is a financial promotion and has been reviewed in accordance with being fair
clear and not misleading, however Sturgeon Ventures LLP in accordance with
COBs 2.4.6 has taken a proportionate approach but does not verify the
information. The information it is only for Guidance, and Education and none of
the information contained within should be constituted as advice.
This document is for Professional Clients and Eligible Counterparties and their
Professional Advisors and is not for Retail Clients. If you seek advice, on any
aspect regarding AIFMD, or any other related subjects in any of the content
please contact the contributor for Professional Advice with regards to your own
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legal opinion in your own jurisdiction.
AIFM Solutions is a trading name of Sturgeon Ventures LLP which is authorised
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July 2015
Contacts
Rob Moulton
Partner
T: +44 (0)20 7859 1029
rob.moulton@ashurst.com
James Perry
Partner
T: +44 (0)20 7859 1214
james.perry@ashurst.com
Jake Green
Partner
T: +44 (0)20 7859 1034
jake.green@ashurst.com
Nicola Higgs
Partner
T: +44 (0)20 7859 1033
nicola.higgs@ashurst.com