The proposed 2015 extension of Alternative Investment Fund Managers’ Directive (AIFMD) passporting to non-European Union (EU) fund managers would be premature and could cause market distortion, according to the Association of the Luxembourg Fund Industry (ALFI).
Responding to ESMA’s call for evidence on the AIFMD passport for third-country fund managers, ALFI stated that extending the passport to third countries should not occur until national private placement regimes (NPPRs) are abolished.
It argued that a parallel system would put EU fund managers at a disadvantage, thereby causing distortion in the market.
The statement suggested that the decision should be deferred until 2018, when NPPRs are due to be fully abolished anyway. If implemented, the decision should then be followed by a one-year transition period.
The ESMA call for evidence released plans to present the European Parliament, Council and Commission with a decision on extending the AIFMD passport by 22 July 2015.
Currently, non-EU alternative investment fund managers are subject to the national private placement scheme of each EU member state in which its funds are marketed or managed.
