19 April 2011

Jersey retains flexibility as it extends its funds regime

Following confirmation of the AIFM Directive at the end of 2010, Jersey has announced that it is working to deliver a range of flexible options, including a fully AIFMD compliant regime and to retain existing complementary regimes for asset managers that have no wish to access EU institutional capital under an AIFMD passport.

The island has taken a joined up approach to AIFMD, with commercial representatives of its funds industry working in partnership with Jersey Finance, the central promotional body for the international finance centre, to ensure that Jersey’s strategy offers certainty for existing managers and a highly competitive platform moving forward.

The decision to work towards a fully AIFMD compliant regime and retain the existing flexible regime for alternative asset managers follows a detailed survey of existing clients to understand their requirements and expectations as level II implementation measures are developed and announced.

Jersey is confident that it will satisfy the ongoing requirements of the AIFMD as adopted. This view has been determined through the funds industry and Jersey Finance jointly funding and operating a dedicated AIFMD working party, which has engaged PwC to act as coordinating consultants as Jersey develops the details of its AIFMD compliant regime.

A key piece of work currently being undertaken by the working party is an impact and gap analysis and central to that is the survey among existing clients, details of which have been developed by PwC, Jersey Finance and the Jersey Financial Services Commission, with industry representatives and Jersey Finance working together to collect data.

Geoff Cook, CEO of Jersey Finance, said:
“Jersey is exceptionally well placed at a strategic level to move forward with development of its AIFMD compliant regime and we are very pleased with the progress of our working party. We have a thriving alternative funds industry and the message to intermediary partners, and managers, in London, Europe and across the globe is that Jersey is open for business and on track to be one of the leading international finance centres in the development and adoption of a flexible regime that provides genuine choice, including full AIFMD compliance.”

The timetable for development of Jersey’s regime will be driven by details of level II implementation measures, which are expected to gather pace between now and the end of 2011.

Brendan McMahon, Private Equity Leader within the Investment Management Group of PwC LLP, and lead consultant for the working party, commented:

“It is important to remember that Jersey already has an appropriate regulatory regime in place and existing managers working under the national private placement (NPP) regime will be able to continue operating as normal until at least 2018. The programme that is underway to shape and develop Jersey’s future AIFMD compliant regime, including work to participate in the passport programme that is due to come into effect in 2015, can therefore take place in parallel with existing business. In addition, we will be exploring enhancement of existing options for those asset managers whose main source of institutional capital is outside the EU, thus ensuring that Jersey has a flexible and appropriately regulated offering for all managers, globally.”

In addition to its own working party, Jersey Finance has liaised with AIMA and EVCA, participating in their technical working groups and feeding comments into their submissions to the Committee of European Securities Regulators’ (CESR) call for feedback and evidence on level II implementation measures, including the content of cooperation agreements between regulators. Jersey’s regulator, the Jersey Financial Services Commission, has also made a direct submission to that consultation.

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