Jersey cites business as usual following publication of AIFMD rules
Jersey is ideally placed to embrace the requirements of the Alternative Investment Fund Managers Directive (AIFMD), according to Jersey Finance and the Jersey Funds Association, following the publication of the European Commission’s Level II implementation rules this week (19th December).
Acknowledging publication of the long-awaited rules, both Nigel Strachan, Chairman of the Jersey Funds Association, and Heather Bestwick, Deputy Chief Executive, Jersey Finance, re-emphasised that it would be business as usual for funds business in Jersey throughout 2013 and beyond.
As it has previously stated, Jersey, as a non-EU ‘third-country’ for the purposes of the Directive, will not need to comply with the Directive when it comes into force for EU Member States in July 2013. Instead Jersey will, until at least 2018, continue to facilitate funds business as normal within the EU through national private placement regimes. Jersey’s regulator is already fully engaged with the regulators of Member States where Jersey funds are marketed to finalise the individual agreements required for this.
Jersey is also committed to introducing the option of a fully AIFMD-compliant regime and obtaining an EU-wide passport to allow managers to market alternative funds to investors across the EU by 2015 - as soon as is possible for ‘third countries’.
At the same time, as a non-EU jurisdiction, Jersey is able to offer a further choice by maintaining a separate regime outside the scope of the Directive, for managers who don’t want to access EU capital or operate in the EU.
Heather Bestwick commented:
“The publication of these rules is long-awaited and should give EU Member States and the wider funds industry with an interest in Europe something concrete to work with and therefore a degree of certainty as they prepare to introduce the Directive in July 2013. There will now be a process of analysing and digesting the rules, as EU Member States finalise how the finer details of the Directive can be implemented.”
Nigel Strachan added:
“As far as Jersey is concerned, we remain excellently placed to continue to facilitate alternative funds business into Europe through national placement regimes, and at the same time offer flexibility to fund managers seeking to stay outside of Europe by maintaining a completely separate regime outside of the AIFMD. Meanwhile, Jersey is committed to being in the first tranche of third countries to fully comply with the Directive by obtaining an EU-wide passport by July 2015.”
The European Commission’s published Level II Guidelines are available at http://ec.europa.eu/internal_market/investment/alternative_investments/index_en.htm .