European Union regulators have advised against including the two jurisdictions where most hedge funds are set up in the distribution passport for the region but favoured including 12 other countries, including the US. Yesterday the European Securities and Markets Authority advised that the Alternative Investment Fund Managers Directive passport should be extended to non-EU alternative investment fund managers and alternative investment funds to 12 countries, dependent on some conditions. Without the passport alternative investment fund managers and funds have to meet the national regulations in each EU member state where they market funds.