Under the Alternative Investment Fund Managers Directive (AIFMD), the European Securities and Marketing Authority (ESMA) was asked by the European Commission to advise on the application of the AIFMD passport to non-EU (third country) Alternative Investment Fund Managers (AIFMs) and Alternative Investment Funds (AIFs). In ESMA’s advice published on 19 July 2016 (ESMA press release),Guernsey and Jersey were two in a group of only five jurisdictions to receive an unqualified and positive assessment. ESMA confirmed that “there are no significant obstacles impeding the application of the AIFMD passport to Canada, Guernsey, Japan, Jersey and Switzerland”. The European Commission will now consider the advice of ESMA. The next step is the preparation of a Commission ‘delegated act’ which will in turn be scrutinised by the European Parliament and Council.