Asset managers prompt EC passporting consultation

The European Commission will launch a consultation to improve fund passporting, after asset managers flagged issues with the system.

Originally designated under the Alternative Investment Fund Managers Directive (AIFMD) the pan EU marketing passport allows EU managers of EU funds to market their funds.

“Asset managers have told us that the existing EU passporting system isn’t working properly. For me, a passporting system that works for investment funds is fundamental to a single market for capital,” said Commissioner Jonathan Hill during a keynote speech at the EUROFI seminar in Amsterdam.

“That’s why we’ll launch a consultation in May to identify the main barriers to funds operating in other countries. Then, we’ll improve passporting so that investors can get hold of the right information; where they have more choice and enjoy lower charges.”

Prior to implementation, EU managers were restricted to marketing their funds into the EU through the National Private Placement Regimes (NPPR).

The EC announced in December that the passport would be implemented in stages and that the NPPR would not be shut off until the passport scheme was fully implemented.