The British Virgin Islands Government has published the Securities and Investment Business (AIFMD) Regulations 2016, which create an opt-in regime for business under the European Union's Alternative Investment Fund Managers' Directive.

These regulations will take some time to come into force, if they do at all. The European Union has still not decided whether the BVI ought to be allowed to benefit from the AIFMD marketing passport which, if it applies, will allow alternative investment funds in the BVI to be marketed to investors all over the EU. The Government has published the regulations in anticipation of good news.

In July the European Securities and Markets Authority (ESMA) published advice in relation to the application of the AIFMD passport to non-EU AIFMs and AIFs in twelve countries: Australia, Bermuda, Canada, Cayman Islands, Guernsey, Hong Kong, Japan, Jersey, Isle of Man, Singapore, Switzerland, and the United States. ESMA said that there were no impediments for Canada, Guernsey, Japan, Jersey and Switzerland. Regarding AIFs only, it found no significant obstacles in the way of Hong Kong and Singapore. It gave the green light to Australia, on condition that the regulator there extends the ‘class order relief’ from some Australian regulations to all EU countries and not just to some. It gave partial approval to the United States. It found it impossible to give 'definintive advice' for Bermuda and the Cayman Islands as both are setting up new regulatory regimes. ESMA thought that the absence of an AIFMD-like regime made it difficult to assess the Isle of Man's merits.

ESMA, however, is not the EU body that makes the decision. The BVI Government is awaiting further developments with some anticipation.