Veneziano & Partners published a white paper for US and non-EU Alternative Investment Fund Managers on the developments and future outlook of fund distribution and private placement under the Alternative Investment Fund Directive (AIFMD).
London, UK (24th Oct) – Veneziano & Partners
The white paper addressed to US and non-EU Alternative Investment Fund Managers entitled “Future of Fund Distribution under AIFMD”, describes the current status and foreseeable developments in the regulation governing distribution and private placement of alternative funds in Europe.
The Alternative Investment Fund Manager Directive (AIFMD) provides authorised European Alternative Investment Fund Managers (EU AIFM) with a marketing passport. Leveraging on the very successful experience of the marketing passport introduced by the UCITS Directive, the AIFMD marketing passport allows for the marketing across Europe of EU Alternative Investment Funds (EU AIF). The AIFMD indeed contains provisions also for the extension of such marketing passport to non-EU AIFMs, upon release of positive advice from ESMA on a list of non-EU domiciles and ensuing delegated acts from the European Commission. Whilst two sets of advice were issued by ESMA in 2015 and 2016 respectively, there is still at the date of this paper no delegated act from the European Commission on the extension of the passport, nor we can predict when any such act will be issued, if at all.
Also, after the initial enthusiasm for the extension of the marketing passport fizzled out – says Attilio Veneziano, founder of Veneziano & Partners – it emerged in more details that the process for the granting of the right to passport, once available, will entail a complete authorisation of the third country AIFM with the authority of the chosen Member State of Reference in Europe. Thus, the extension of the passport becomes the consequence of a full scope AIFM authorisation in Europe of the third country AIFM. Private Placement under AIFMD remains the most viable option for the time being.
“Private Placement under AIFMD remains the most viable option for the time being.”
Veneziano & Partners is an international consulting boutique specialised in the European regulation of cross-border fund distribution. In catering to a selected group of investment managers, hedge fund managers and financial institution worldwide, the firm offers a custom-made global fund registration service, enabling its clients to gain competitive advantage in an ever increasingly regulated environment.
Download the white paper here