IoM Ready For AIFM Directive

by Amanda Banks, Tax-News.com, London

26 October 2010

The Isle of Man government has said that it is ready to adapt to the new challenges of the forthcoming Directive on Alternative Investment Fund Managers, recently endorsed by European Union economic affairs and finance ministers.

In a statement on October 20, noting the imminent adoption of the Directive, the Isle of Man government said:

“The latest proposals in the Directive would allow non-EU managers and funds to obtain the same pan-European marketing ‘passport’ as their European-based counterparts two years after the directive comes into force by around 2013.”

“Furthermore, the current country-by-country private placement marketing arrangements will remain applicable for at least five years after the Directive comes into force, but will eventually be abolished once the passport system is adjudged to be operating satisfactorily.”

This will allow fund managers, compliant with the new guidelines, to market alternative investment within the EU single market.

It is understood that the draft Directive will be considered at a trialogue meeting of representatives of EU member states, the European Parliament and the European Commission. If, as expected, it is approved, the legislation will go to a full session of the Parliament for approval at first reading in early November.

“The Financial Supervision Commission has been monitoring the progress and content of the Directive closely and will be actively working with the Island’s Funds Development Group in developing a funds offering which meets the access requirements proposed in the Directive,” the government concluded.

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