User:16912 Rhiannon/ AIFMD Marketing and the AIFMD passport

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Marketing and the AIFMD passport

For the purposes of the directive, marketing is defined as any offering or placement (sale) of an AIF at the initiative of the AIFM, or on behalf of the AIFM, to investors domiciled in the EU.[1][2] Member state laws and rules determine whether a fund is engaged in marketing for purposes of the directive.[3]

EU funds managed by EU managers may be marketed across the EU under the AIFMD passport, provided the manager complies with all of the requirements of the directive.[1] EU or non-EU funds managed by non-EU managers may currently be marketed within the EU only under national private placement regimes,[3] as non-EU managers cannot obtain the marketing passport.[4] Likewise, non-EU funds managed by EU managers may only be marketed under the private placement regimes.[3] Funds marketed under national private placement regimes are subject to compliance with certain provisions of the AIFMD related to reporting, regulatory cooperation agreements, and the jurisdiction of the fund and the manager not being listed as a "non-cooperative country and territory" by the Financial Action Task Force (FATF).[5] In 2015, an analyst for EurActiv.com, a European news and policy website, expressed concern that the directive puts non-EU funds at a disadvantage.[5][6] In 2015, the European Securities and Markets Authority initiated a consultation to discuss issuing new rules to allow EU AIFMs to market their non-EU AIFs under the AIFMD passport, and likewise for non-EU managers to market their funds under the AIFMD passport.[5][7][8]

In a study conducted by Multifonds in June 2014, 72% of respondents from the EU and Canada said they expected non-EU managers to set up European operations in order to take advantage of AIFMD.[9] In a 2014 study conducted by Preqin, 71% of American fund managers said they believed the AIFMD would have a negative effect on the industry.[10][11] Fund managers from within the EU, Asia and the rest of the world excluding the United States reported in 2014[12] and 2015[13] that the AIFMD was costing them more than they had expected it to.[14] Criticism of the costs of the legislation comes partly from industry lobbyists.[6]

References

  1. ^ a b David Lawrence (8 April 2014). "AIFMD: Time to Back Up on Reverse Solicitation". FIN Alternatives. Retrieved 11 February 2015.
  2. ^ "AIFM Directive for US Private Fund Managers". The National Law Review. 24 October 2014. Retrieved 11 February 2015.
  3. ^ a b c Tim Clipstone (27 June 2014). "The British Virgin Islands – AIFMD one year on". HedgeWeek. Retrieved 11 February 2015.
  4. ^ Michelle Moran (30 March 2015). "AIFMD offers passport to European markets". Financial Times Advisor. Retrieved 21 July 2015.
  5. ^ a b c "Why competition is vital to Europe's investors". EurActiv.com. 15 January 2015. Retrieved 11 February 2015.
  6. ^ a b Saul Griffith (21 July 2014). "The AIFMD Deadline Tomorrow: Is The Industry Ready?". ValueWalk. Retrieved 11 February 2015.
  7. ^ "Uncertainty over extent to which AIFMD passport will be afforded to non-EU managers". COO Connect. 16 Feb 2015. Retrieved 22 July 2015.
  8. ^ "Call for evidence on AIFMD passport and third country AIFMs". ESMA. Retrieved 15 July 2015.
  9. ^ Fishburn Hedges (10 September 2012). "Two thirds of fund admin industry believes AIFMD will be a catalyst for the convergence of long-only and hedge funds". Media Centre. Multifonds. Retrieved 11 February 2015.
  10. ^ Ivy Schmerken (17 July 2014). "Hedge Fund Readiness for AIFMD Is Lacking as Deadline Approaches". Wall Street & Tech. Retrieved 9 June 2015.
  11. ^ Simon Jessop (21 July 2014). "Foreign hedge funds could lose as Europe tightens rules". Reuters. Retrieved 9 June 2015.
  12. ^ Vittorio Hernandez (11 August 2014). "Minority of Infrastructure and Real Estate Fund Managers Believe AIFMD Has Positive Impact". International Business Times. Retrieved 9 June 2015.
  13. ^ Nishant Kumar (16 February 2015). "European hedge funds close at record pace as higher costs, poor returns bite". Reuters. Retrieved 9 June 2015.
  14. ^ Sandra Kilhof (15 November 2014). "AIFMD compliance falls behind". World Finance: The Voice of the Market. Retrieved 9 June 2015.
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