Industry news / 20 March 2019
Jersey MoU with UK regulator gives managers a certain platform through Brexit
Last week, Jersey’s financial regulator the Jersey's Financial Services Commission (JSC) signed an agreement with the UK financial regulator, the Financial Conduct authority (FCA) to ensure that investment funds in Jersey will still be able to be marketed into the UK after Brexit – a move that Michael Newton, Group Head of Fund Services at Crestbridge, believes should give managers added confidence in Jersey as they navigate the fallout of Brexit.
The Memorandum of Understanding (MoU) replaces an existing agreement between the JFSC and FCA, facilitated originally by the European Securities and Markets Authority (ESMA). It would come into effect in the event that EU law no longer applies in the UK, as a result of a ‘no deal' Brexit or at the end of any transitional period.
Commenting in the significance of the agreement, Michael said:
“The UK represents the biggest alternatives investor market in Europe, so it’s absolutely vital for Jersey, as a leading alternative funds hub, to maintain a robust and seamless pathway for global managers to access that market. At a time when Jersey’s funds industry is thriving, this development is evidence of just how seriously Jersey takes its responsibilities as a facilitator of global capital and should send a message of real certainty and give managers some much needed confidence in Jersey as they try to navigate Brexit, regardless of how it unfolds.”
Read the full statement from the JFSC here.