AIFMs who are authorised in their EEA home State may exercise passport rights for management and marketing in Estonia on a cross-border or branch basis. In order to offer an alternative fund, a fund manager need not have a permanent seat or place of business in Estonia or appoint a third party as a representative. The requirements for passporting are stipulated in the Investment Funds Act.
An EEA AIFM can manage an AIF established in Estonia on a cross-border basis by submitting relevant documents to the Estonian Financial Supervision Authority (the “EFSA”) through the competent authority of its home State. Similarly, in order to establish a branch for managing an AIF in Estonia, an EEA AIFM must submit relevant documents to the EFSA via its home State competent authority. In both cases the EEA AIFM may commence management of an AIF once the EFSA has received proper information from the home State competent authority.
Marketing of an EEA AIF in Estonia is possible through the private placement regime. In order to do this the EEA AIFM must make a notification to the EFSA through its home State competent regulator. After the EFSA has received the proper information, the EEA AIFM may commence marketing.
Marketing of a Non-EEA AIF by an EEA AIFM is possible if the AIF is not marketed in any other EEA State and if the AIF is marketed through a private placement. Submitting a notification with relevant documents to the EFSA is required. The EFSA will notify the EEA AIFM within 30 business days after it has received the relevant documents if the EEA AIFM is allowed to commence marketing in Estonia.
Additionally, we would like to note that Estonia has implemented Article 43 of the AIFMD into the local law, which allows public placement of an EEA AIF in Estonia if the public placement of the EEA AIF is also permitted in the home State of the AIF. An AIFM must submit to the EFSA in either Estonian or English language (i) statement of the home State authority that the operation of the AIF and the AIFMD complies with the requirements established in the home State, and the public offer thereof is permitted and (ii) public offer prospectus. A public offer of a fund may be commenced after receipt of consent of the EFSA and which will be given within six months after receipt of respective application but at the latest two months after receipt of all the required data and documents. Estonian regulation regarding public placement applies.
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