The Cayman Islands and Bermuda have indicated their readiness for the Alternative Investment Fund Managers Directive (AIFMD), confirming they will relevant co-operation agreements in place by the July 22 deadline.
On March 15, the Cayman government passed the Monetary Authority (amendment) law, 2013, which enables the Cayman Islands Monetary Authority (CIMA) to enter into Memoranda of Understanding with its EU counterparts, using a model memorandum of understanding developed by the European Securities Markets Authority (ESMA).
Further, in statement dated March 25, the government confirmed continuing implementation of measures to ensure that CIMA will have the relevant co-operation agreements in place by the July 22 deadline. Non-EU AIFMs will be required to comply with certain provisions of the Directive by July 22 where they are marketing non-EU (including Cayman Islands funds) within the EU.
Separately, the Bermuda Monetary Authority (BMA), the Bermuda regulator, has confirmed that Bermuda is now able to satisfy the three core conditions that are required of a so-called “Third Country” under AIFMD. Complying with these conditions is necessary for Bermuda if its investment funds, and investment funds managed by its investment managers, are to be allowed to be marketed in Europe under the private placement regimes of EU member states after the July 22 2013 transposition date of the AIFMD, and following this, under the anticipated extension of the passporting regime to Third Countries in 2015.
The three core conditions are as follows:
1. There are in place appropriate cooperation arrangements, which take the form of agreements between the Third Country supervisory authority and the regulators of the relevant EU member state(s);
2. Third Countries are not on the Financial Action Task Force list of non‐ cooperative jurisdictions; and
3. Agreements for exchange of information for tax purposes are in place with the relevant EU member state(s).