In response to the European Union’s Alternative Investment Fund Managers Directive (AIFMD), the Authority initiated a process of developing an opt-in Alternative Investment Fund Manager (AIFM) regime for Bermuda. The objective was to create a regime which could be assessed by the European Securities and Markets Authority (ESMA) to pose “no significant obstacles” to the extension of third-country AIFMD passport rights to Bermuda AIFMs.
The first step toward achieving this objective was taken with the passage of the Investment Business Amendment Act 2015, which resulted in the basis for the AIFM regime being incorporated within the Investment Business Act 2003 and which provided the Authority with the power to issue proposed AIFM Rules. Passage of the Investment Funds Amendment Act 2016 was the next key development. Finally, comprehensive AIFM Rules were published and can be brought into force by the Authority when appropriate.
At present, ESMA is not progressing work related to extension of third-country AIFM passport rights, and the initiative has not been included as an identified priority in its current Regulatory Work Programme.
Notwithstanding this, the Authority remains committed to finalising a Bermuda AIFM regime when circumstances warrant. Meanwhile, the Authority continues to monitor this area closely and will provide updates as appropriate.
In the interim, Bermuda managers wishing to manage and/or market alternative investment funds within the European Union (EU) are able to do so via the national private placement regimes of individual EU Member states. To facilitate such activity, the Authority has signed cooperation agreements with the regulatory authorities in the majority of EU Member States in relation to the AIFMD. These cooperation agreements are a key element in effective supervision of non-EU AIFMs, and are a pre-condition in allowing non-EU AIFMs access to EU markets or to perform relevant fund management activities.
Listed below are the regulatory bodies in EU Member States with whom the Authority signed the AIFMD cooperation agreements :
|NAME OF REGULATOR
|Financial Services and Markets Authority
|Financial Supervision Commission.
|Cyprus Securities and Exchange Commission
|Czech National Bank
|Estonian Financial Supervision Authority
|Autorite des marches financiers
|Federal Financial Supervisory Authority (BaFin)
|Hellenic Capital Market Commission
|Penzugyi Szervezetek Allami Fellugyelete
|Central Bank of Ireland
|Finansu un kapitala tirgus komisija
|Bank of Lithuania
|Commission de Survellance du Sector Financier
|Malta Financial Services Authority
|Polish Financial Supervision Authority
|Comissao do Mercado de Valores Mobiliarios
|Romanian Financial Supervisory Authority
|Narodna banka Slovenska
|Autoriteit Financiele Markten
|Financial Conduct Authority