The Cayman Islands is confident it will be granted the EU’s Alternative Investment Fund Managers Directive (AIFMD) passport, according to the Alternative Investment Management Association (AIMA), the global hedge fund industry association.
Cayman is awaiting assessment by the European Securities and Markets Authority (ESMA), which it hopes will lead to its approval for the pan-European marketing passport.
The region was not included in the initial assessments which saw ESMA recommend the AIFMD passport for Jersey, Guernsey and Switzerland. However, AIMA said Cayman was “well-placed” for a successful review in the near future.
Cayman has already entered into the requisite co-operation arrangements with the major EU investment securities regulators and the necessary tax information exchange agreements with EU governments as required by the AIFMD, according to AIMA.
The Cayman Islands Government has also been developing an AIFMD-compliant opt-in regime to ensure that the jurisdiction can continue to meet the needs of Cayman-based alternative investment fund managers who want to market funds into the EU under the passport.
Jack Inglis, chief executive officer of AIMA, said: “The global industry as a whole needs Cayman AIFs to be approved under the AIFMD passport to ensure that pension funds and other European institutional investors can continue to benefit from investing in some of the world’s leading alternative investment funds.
“We are confident that Cayman will be granted the passport since the new Cayman regime looks similar to those in the jurisdictions that have already obtained favourable assessments.”
Alan Milgate, chairman of AIMA Cayman, said: “ESMA’s decision should not be misinterpreted. Caymanhas simply not yet been assessed, and has certainly not been adversely opined on, or excluded by ESMA.
“We look forward to the Cayman Islands being assessed positively in ESMA’s ongoing review of additional non-EU jurisdictions and that AIFMs based in the Cayman Islands will continue to benefit from evolving legislation which is both flexible and adaptable.”
Cayman Finance also said it is working very closely with ESMA as it develops the additional AIFMD regimes.
AIFMD, AIMA, Jack Inglis, Alan Milgate, Cayman Finance, Cayman Islands, Europe