"Since the Alternative Investment Fund Managers Directive (AIFMD) was fully implemented in 2011 the intention has been to extend the passport scheme to non-EU fund managers.
But in the absence of clarity over what a new passport scheme would look like and how it would work for funds domiciled outside of the bloc, counsel say some AIFs are just not interested in joining it.
'The US is a massive market for European investors, but the idea that the SEC [Securities and Exchange Commission] will bend its approach to regulation to fit with AIFMD is a big ask,' said Lisa Cawley, a partner at Kirkland & Ellis in London. 'And if it doesn’t, it will be very interesting to see how the passport plays out.'"
This article appeared in its entirety in the February 16, 2016 edition of IFLR.