NPPR for investment fund marketing to EU continues to work well

02 March 2017

Existing national private placement regimes (NPPRs) to allow funds to be marketed into the EU by investment managers continue to work well in the run-up to the implementation of the ESMA passport regime, says Ogier Group Partner Craig Cordle.

Mr Cordle, who works in Ogier's top-tier ranked Guernsey investment funds team, has recently been in attendance at SuperReturn International in Berlin – the leading private equity and venture capital conference attended by around 2,000 professionals from the PE sphere.

"One of the big themes to emerge as we talk to more and more people is that the existing NPPR regime is still working well in terms of marketing investment fund opportunities into the EU from outside," said Mr Cordle.

"That's a hot topic because although ESMA reported last July that there was no obstacle to an AIFMD passport being extended to Jersey and Guernsey – and although a similar verdict is expected in respect of BVI and Cayman once legislative amendments have been enacted – there is no indication yet on when, or even if, the new regime will come into force, particularly in the light of the Brexit negotiations over the coming years.

"The overall message here is that the private equity industry is relaxed about the ESMA passport timeline because the existing NPPR route will be in place until at least 2018."

Under the NPPR system, non-EU Alternative Investment Fund Managers and Alternative Investment Funds must comply with each EU country’s national regime when they market funds in that country.

The extension of the AIFMD passport regime, which is currently only available to EU entities, would allow non-EU jurisdictions to seek a 'passport' through which they can market and manage throughout the EU.

Mr Cordle was attending the SuperReturn event as part of the Guernsey Finance delegation alongside representatives from Vistra, Langham Hall and JTC Group.

"The overall message here is that the private equity industry is relaxed about the ESMA passport timeline because the existing NPPR route will be in place until at least 2018." Ogier Group Partner Craig Cordle
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