AIFMD Marketing Passport is the new way to distribute Alternative Investment Funds in Europe. The process of AIFMD Marketing Passport is streamlined and ensures a swift access to market. It enables cross-border AIFs distribution in Europe and makes for a very powerful tool to raise capital amongst institutional investors in Europe.
The AIFMD brand is gaining momentum and recognition in the market further to Directive 2011/61/EU, which introduced an electronic, regulator vs regulator AIFMD marketing passport for EU AIFMs and AIFs. Within 20 working days from submission of a complete marketing passport application to the Home State regulator of an AIFM, marketing can commence in the Host State of choice. The AIFMD marketing passport under for EU AIFMs and EU AIFs mirrors the one introduced by UCITS IV directive.
European investor base has always been instrumental to the growth of non-EU AIFMs. AIFMD accordingly contains third country recognition mechanisms for the application of AIFMD marketing passport to non-EU AIFM or non-EU AIF. Delegated acts will need to be adopted by the European Commission, following a positive advice delivered by ESMA. The relevant provisions on the extension of the AIFMD marketing passport to third countries come quite handy for foreign fund managers with an interest in European markets.
National Private Placement Regime
In the interim, non-EU AIFs can be marketed in Europe without a passport by EU and non-EU AIFM via national private placement regimes under AIFMD. AIFMD contains provisions and requirements under Article 36 and Article 42 for the marketing in EU without a passport of non-EU AIFs also by non-EU AIFM. Host Member States are at liberty of gold-plating the process of the national private placement registration and impose compliance with additional requirements.
AIFMD Passport Extension to Third-Countries
AIFMD provides for the extension of the AIFMD Marketing Passport also to third-country AIFMs. The process for the application of the passport as well as the authorisation process for non-EU AIFMs are part of a broader mechanism of recognition of third countries that is found generally across European regulation on financial services. Once selected third-country domiciles have been accepted for the extension of the passport, AIFMs from those domiciles may decide to be authorised under the AIFMD, comply with the whole directive and obtain the ability to passport their funds throughout Europe. As part of this process. third-country AIFMs have to identify a Member State of Reference (MSR) in Europe.
Veneziano & Partners is a veteran of the process of AIFMD fund passporting and private placement and can efficiently prepare and arrange submission of applications, liaise with regulatory authorities until approval and on ongoing basis thereafter