From 22 July 2014 Cayman Islands funds can only be marketed in the member states of the EU in compliance with the requirements of AIFMD, unless a relevant exemption applies.
Managers of Cayman funds will be able to continue marketing their funds in the EU member states under each member state’s national private placement regimes (“NPPRs”) until at least 2018.
Only EU managers of EU funds will be able to apply for a passport to market their EU Funds to professional investors on a cross border basis throughout the EU. However, managers of funds established in jurisdictions outside the EU will be able to continue marketing in EU member states subject to NPPRs provided that certain minimum requirements of the AIFMD are satisfied and Cayman funds satisfy the minimum requirements prescribed by the AIFMD.
Managers of Cayman funds wishing to market their funds using the NPPRs will need to comply with certain provisions of AIFMD. These differ depending on whether the manager is established in the EU or in another country.
Between 2015 and 2018, the European Securities and Markets Authority (“ESMA”) will give an opinion as to whether the passport regime should be extended to these other countries and if it is, managers of Cayman funds will be able to choose whether to continue to market under the NPPRs or apply for a passport.
Chris Humphries