News & Analysis

British Virgin Islands launches AIFMD opt-in

The new EU-equivalence opt-in was established to ease the transition from the national private placement regime to the AIFMD passport.

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The British Virgin Islands has introduced a new regime which will enable fund managers to opt in to be regulated to an EU-equivalent standard, allowing them to market their funds in the bloc and, in the future, obtain an AIFMD passport.

Amendments to the territory’s Securities and Investment Business Act have been approved, and include an option for new or existing funds to become an EU Qualified BVI AIFM.

It is intended to smooth the transition from marketing of funds under the NPPR, which could expire as early as 2018, to using an AIFMD passport.

“It is anticipated that managers that intend to continue to market BVI funds into the EU under the NPPRs will not opt in, whereas managers seeking to apply for an AIFMD passport will opt in,” a spokesperson for law firm Walkers Global said. 

The change comes as the European regulator ESMA considers whether or not to advise extension of the AIFMD passport to the jurisdiction.

ESMA was not able to comment specifically on the territory’s application for a passport. Chairman Stephen Maijoor said earlier in the week giving further advice on third-country suitability for the passport was a short-term priority for the regulator (see pfm 13 October)