As it welcomes new acquisition Legis, Orangefield is perfectly
placed to advise clients on the National Private Placement scheme,
says Patricia White.
How effective is Guernsey's National Private
Placement scheme in cooperation with AIFMD in Europe?
Patricia White (PW): The National Private
Placement (NPP) scheme is working really well for Guernsey in all
key markets, especially the UK. It is particularly effective when
funds are placing in three or four countries, making it easier to
negotiate. If there are many more, there is the possibility that it
may become too onerous.
Is the NPP a viable alternative?
(PW): Absolutely. Alternative investment fund
managers using the NPP route have a quicker and cheaper option
available to them than those required to be fully compliant with
the Alternative Investment Fund Managers Directive (AIFMD), and
this route should be chosen where possible.
Guernsey also offers a dual opt-in regime for those fund
managers and depositories whose activities may require them to
satisfy the full obligations of AIFMD when distributing funds into
European and non-European countries.
Has it been easy for clients with Guernsey-domiciled
funds to comply? What kind of legal challenges have they
(PW): Post-implementation of AIFMD, it has
proved to be a surprisingly smooth process. Many smaller funds are
out of scope of the directive as they fall within the de-minimise
exemption levels. For the majority, marketing in a limited number
of jurisdictions fits well with the NPP regime. Having positioned
themselves with appropriate solutions prior to the implementation
of the directive, all other managers have now adapted to the
requirements of the regulation.
The Guernsey regime has options to secure compliance with AIFMD
and has encountered no particular legal problems as a non-EU
Mergers and acquisitions have been identified as an
emerging trend in the offshore admin sector. Why is
(PW): This trend reflects renewed optimism in
global markets and the widespread realisation that some markets
remain under-priced, presenting an opportunity to buy into this
space. Also the increasing costs and obligations of compliance with
international regulation make mergers an attractive
What kind of benefits have Legis and Orangefield clients
seen since the acquisition?
(PW): With our shared vision for continuous
growth and development through the provision of award-winning
service, and with the continued focus on the client, our
collaboration is proving very successful. We have assets under
administration in excess of $50 million and a presence in more than
20 jurisdictions, so fund managers can now leverage the global
capability of the larger organisation, while receiving the
continued bespoke service our clients have come to expect.
Guernsey is well positioned for continued success in funds and
as part of Orangefield Legis, being part of a single-platform
solution, we offer clients a one-stop shop. We assist fund managers
in all financial centres, offering tailored solutions specialising
in the administration of private equity, real estate and hedge
What other trends have you seen emerging in the Channel
Islands, and what do you expect to see in the rest of
(PW): Following a number of years where fund
raising has presented a challenge, we are now seeing increasing
numbers successfully launching.
We are also seeing the use of fund structures to fill the gaps
left by the implementation of Basel II, in particular the use of
equity structures that provide the benefit of debt as well as an
increasing use of deal-by-deal structures as opposed to fully
regulated fund vehicles.
This year's general election in the UK may also result in
pause of activity, so subsequent trends may be dependent on the
An original version of this article was published
inAsset Servicing Times, Guernsey
supplement, April 2015.
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