Bermuda is on track to qualify under new EU rules governing third country rights for Island-based alternative fund managers.

The Island is due to amend the Investment Business Act to make it eligible for a Euro “passport” under the European alternative investment fund managers directive (AIFMD).

Bermuda Business Development Agency (BDA) business development manager Sean Moran said: “As a premier jurisdiction with a highly respected reputation, we expect Bermuda will be favourably considered for passport rights in a subsequent stage of this assessment process.

“This is an ongoing process and we are fully committed to seeing through.”

Mr Moran said the Bermuda Monetary Authority (BMA), Government and Bermuda’s asset management industry had worked together to develop legislation that meets European standards.

The European Securities Market Authority (ESMA) last week cleared the British territories of Guernsey and Jersey and Switzerland, pending new legislation, to market alternative investment funds in the EU area on a cross-border basis.

The recommendation would extend the same rights to approved non-EU entities that are currently available only to EU-based alternative investment fund managers.

ESMA included Bermuda, along with the Cayman Islands, Canada, the British and US Virgin Islands and the Isle of Man, among a list of countries that should be assessed for compliance with key principles of the EU alternative investment rules.

A spokesman for the BMA said: “Bermuda is on its journey towards equivalence under the AIFMD, having achieved some significant milestones over the past several months.

“The authority welcomes the fact ESMA has included Bermuda as one of the countries to be considered in its assessment as we refine the regulatory regime for alternative investment fund managers.”

The ESMA advice on the first jurisdictions will now be considered by the European Commission, parliament and council,