The Joint Opinion is important because it contains the views of the ESAs on the EUSR’s jurisdictional scope on third country (non-EU) transactions and non-EU entities and the interplay between the EUSR and the Alternative Investment Fund Managers Directive (AIFMD) on which fund managers have been seeking clarity since December 2017 when the EUSR was first published.

While the Joint Opinion provides insights on the approach recommended by the ESAs, it will be some time until there is certainty on the interpretation of the various issues raised by the ESAs in the Joint Opinion. In the meantime, AIFMs will need to be mindful of this Joint Opinion when determining issues of interpretation regarding the areas of uncertainty highlighted in this bulletin.

This Great Fund Insights alert focuses on the relevance of the Joint Opinion to AIFMs solely from the perspective of the application of the EUSR regime.