Figures from the Guernsey Financial Services Commission (GFSC)
show that, as at 31 January 2015, 46 Guernsey Alternative
Investment Fund Managers (AIFMs) have used Guernsey's National
Private Placement (NPP) regime to market Alternative
Investment Funds (AIFs) into Europe.
The figures, which solely reflect marketing into Europe by
Guernsey AIFMs and do not include European Economic Area (EEA)
AIFMs, reveal that the 46 managers promote investment funds into
one or more EEA Member States. These cover 15 of the 27
jurisdictions with whom Guernsey signed bilateral cooperation
agreements in July 2013 ahead of the Alternative Investment Fund
Managers Directive (AIFMD) coming into force. The UK remains a key
market for Guernsey managers with 56 AIFs being marketed there.
Managers also market AIFs into other key markets such as
Germany, France, Ireland, the Netherlands, Sweden, Norway and
Finland as well as Belgium, Denmark, Austria, Luxembourg, Estonia,
Portugal and Romania.
Sinead Leddy, Head of Technical at Guernsey Finance, the
promotional agency for the Island's finance industry, said:
"From the outset, Guernsey's response to AIFMD has been
second-to-none, ensuring it is ideally placed to continue to
provide access to Europe. The statistics show that NPP from
Guernsey is being used to target the key countries which promoters
wish to market into. A fund typically markets in between two to
four countries and NPP is the ideal approach for this
In response to AIFMD, Guernsey introduced a dual regulatory
regime through which it is possible to continue to distribute
Guernsey funds into both EU and non-EU countries: the existing
regime remains for those investors and managers not requiring an
AIFMD fund, including those using EU National Private Placement
(NPP) regimes and those marketing to non-EU investors; and there is
an opt-in regime which is fully AIFMD compliant.
Guernsey's opt-in equivalent regime which has been in place
since January 2014 is appropriate for funds requiring full AIFMD
compliance. However, Guernsey's position as a third country
means our managers and funds who want to access Europe continue to
be able to use NPP regimes.
As a domicile for alternative and particularly private equity
funds, Guernsey offers a variety of potential fund structures with
differing levels of flexibility and regulatory requirements
depending on the appropriate vehicle for a particular project.
Ms Leddy said: "We continue to hear positive feedback from
promoters and their advisers that Guernsey's regulatory
environment is straightforward and, more importantly, things can
progress in a timely manner. The turn-around times in Guernsey are
held to be low compared with those of our competitor territories
where delayed applications can cause issues when bringing a new
product to market."
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