Industry news / 18 August 2016

Significant regulatory announcements bolster Jersey alternative funds appeal


Last month, the European Securities and Markets Authority (ESMA) made an announcement relating to the extension of the funds passport to twelve non-EU countries under the Alternative Investment Fund Managers Directive (AIFMD). 

That announcement confirmed that Jersey was one of only five non-EU jurisdictions it considered to have no obstacles at all in the way of applying the passport. This is thanks to Jersey having had the foresight to put in place an AIFMD-equivalent regime. 

In addition, Jersey’s government and the Jersey Financial Services Commission (JFSC) recently launched a joint consultation aimed at enhancing Jersey’s funds regime. The focus of the consultation is to simplify and rationalise various aspects of the jurisdiction’s funds environment, and includes confirmation of the intention to introduce new products to the market. These products are expected to include a new manager-led Jersey Registered Alternative Investment Fund (JRAIF). 

Graeme McArthur, CEO, Crestbridge said: “These developments are incredibly significant for Jersey as an alternative funds jurisdiction and underline its intention to remain a prominent player in the European funds space. Whilst take-up of the private placement option into Europe remains strong, the confirmation that it should have no difficulties in applying the AIFMD passport in due course should give managers real confidence in Jersey’s long-term ability to market alternative investment funds into the European investor market.” 

“At the same time, the launch of this latest consultation demonstrates that Jersey is committed to innovation and giving the global funds community a regime that is robust, simple, streamlined and flexible, and this should resonate well with asset managers. Our Jersey team remains on the front foot in supporting them with their needs as these developments evolve, with our Luxembourg team providing a complementary comprehensive onshore European solution.”