While Great Britain is breaking up with the European Union, the alternative investments industry in the Cayman Islands is moving closer to the continent in the area of fund marketing.
European regulators of alternative funds report this week that Cayman entities are making good progress in setting up the rules and agreements that will allow Cayman-base funds to receive a so-called “hedge fund passport,” known as the Alternative Investment Funds Managers Directive (AIFMD) as applied by the European Securities and Markets Authority (ESMA).
Currently, Cayman-based funds are marketed in EU nations under separate “private placement” regimes which are due to be phased out in 2018. Approval of the “passport” allow funds of non-EU members to be marketed across the trading bloc.
The ESMA says Cayman is putting in place the framework to address systemic risks.
Minister of Financial Services (Hon.) Wayne Panton says the passport is “just a few short months away from finalisation” of the ESMA requirements.