Investment Funds Update - Europe: Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles: EU

by Dechert LLP

AIFMD – ESMA Issues Advice on Extension of the AIFMD Passport

On 30 July ESMA issued:

  • Its advice on extension of the AIFMD passport to non-EU Alternative Investment Fund Managers (AIFMs) and Alternative Investment Funds (AIFs) (the “Advice”).
  • Its opinion on the functioning of the passport for EU AIFMs and the national private placement regimes (NPPRs) (the “Opinion”).

In its Advice, ESMA assessed six jurisdictions – Guernsey, Hong Kong, Jersey, Singapore, Switzerland and the USA. The Advice concludes that no obstacles exist to the extension of the passport to Guernsey and Jersey, while Switzerland will remove any remaining obstacles with the enactment of pending legislation. No definitive view has been reached on the other three jurisdictions.

The Opinion contains ESMA’s preliminary assessment of the operation of the EU passport and NPPRs. ESMA’s preliminary view is that, given the short time period that has elapsed since the implementation of the AIFMD in EU Member States, a definitive assessment of their functioning is difficult and would recommend preparing a further opinion after a longer period.

However, ESMA has noted in the use of the EU passport divergent interpretations between EU member state regulators on what constitutes “marketing” “material changes” and a “professional investor”, and varying registration fees.

Read ESMA's press release: "ESMA advises on extension of AIFMD passport to non-EU jurisdictions" (30 July 2015). 

Read ESMA's advice to the European Parliament, the Council and the Commission on the application of the AIFMD passport to non-EU AIFMs and AIFs.

ESMA's opinion to the European Parliament, Council and Commission and responses to the call for evidence on the functioning of the AIFMD EU passport and of the National Private Placement Regimes.

On 22 July, ESMA updated its Q and A on the application of the AIFMD in two areas, reporting of AIFs by non-EU AIFMs marketing in the EU under Article 42 AIFMD, and reporting AUM.

ESMA has confirmed that when a non-EU AIFM reports information to the regulator in whose jurisdiction it is marketing as required by Article 42 AIFMD, only AIFs marketed in that jurisdiction have to be taken into account for the purpose of this reporting.

Regarding AUM, ESMA has clarified the that AIFMs should include AIFs created during the reporting period in calculating the total value of assets under management of the AIFM for that reporting period.

Read the updated Q&A on the Application of the AIFMD.

Capital Markets Union - New Resolution from European Parliament 

The European Parliament published a press release on 9 July 2015 announcing the adoption of a non-binding resolution on building a capital markets union (CMU), generally supporting the CMU.

Read the European Parliament's press release: "Capital Markets Union should ease cross-border investment and finance for SMEs" (9 July 2015)

Read the provisional text to the resolution.

EMIR – New Counterparty Classification Letter

ISDA published a new standard form classification letter on 14 July 2015 that will enable counterparties to notify each other of their status for clearing and other regulatory requirements under EMIR.

The letter and accompanying guidance note are available below:

Read ISDA's explanatory memorandum to the form of the ISDA EMIR Classification Letter.

Read ISDA's press release: "ISDA Publishes EMIR Classification Letter" (14 July 2015).

UCITS V – ESMA Consults on Proposed Guidelines on Sound Remuneration Policies Under UCITS V Directive

ESMA has launched a consultation paper on 23 July 2015 on proposed guidelines on sound remuneration policies under the UCITS V Directive and AIFMD.

The proposed Guidelines aim to ensure a convergent application of remuneration provisions and will provide guidance on issues such as proportionality, governance of remuneration, requirements on risk alignment and disclosure. The final Guidelines will apply to UCITS management companies and national competent authorities.

The consultation also proposes a revision of the AIFMD Remuneration Guidelines by clarifying that in a group context, non-AIFM sectoral prudential supervisors of group entities may deem certain staff of an AIFM in that group to be identified staff for the purpose of their sectoral remuneration rules.

ESMA will aim to finalise and publish the UCITS Remuneration Guidelines and a final report by Q1 2016 ahead of the transposition deadline for UCITS V Directive (18 March 2016). The consultation period will run until 23 October 2015.

The press release and consultation paper are available here:

Read ESMA's press release "ESMA consults on UCITS remuneration guidelines" (23 July 2015).  

Read ESMA's consultation paper: "Guidelines on sound remuneration policies under the UCITS Directive and AIFMD".

Written by:

Dechert LLP

Dechert LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.