Guernsey's Government, the States of Guernsey, has now
amended its Investor Protection regulations for AIFMs and AIFs
based in EU Member States that have fully implemented AIFMD in
order to enable easier movement between Guernsey and EU
Guernsey's Chief Minister, Deputy Jonathan Le Tocq, said:
"When I met with EU Capital Markets Commissioner Hill in May,
I set out Guernsey's commitment to supporting free movement of
capital and trade. Our amendment to Investor Protection regulation
extends Guernsey market access to EU AIFMs - a move that is both
sensible and is a further demonstration of that
Guernsey Finance Chief Executive, Dominic Wheatley, said
industry welcomed both the recent ESMA
recommendation and the amendment to the Island's Investor
"This move by Guernsey's government to reciprocate
market access under AIFMD is a clear demonstration of a belief in
the benefits of increased trade and competition in the funds sector
across the EU that the AIFMD passport facilitates. The Guernsey
funds sector is international, highly professional and
well-regulated. A 2015 report by KPMG, International Capital Flows,
analysed the economic benefits provided to the European economy by
the Guernsey funds sector and demonstrated that Guernsey was a
well-regulated conduit for €130 billion of funds into the EU -
half of which is drawn from outside of Europe.
"These funds are invested in supporting economic growth and
supporting jobs in businesses ranging in size from small and
medium-sized enterprises up to multi-national businesses. Guernsey
infrastructure funds, including a hub of renewable funds, assist
with supporting key EU government objectives by facilitating the
construction and management of €6.5 billion of key
infrastructure assets across Europe, as well as investing in
renewable energy projects."
ESMA published its advice in relation to the application of the
AIFMD passport to non-EU AIFMs and AIFs on 30 July. It concluded
that no obstacles exist to the extension of the passport to
Guernsey and Jersey, while Switzerland will remove any remaining
obstacles with the enactment of pending legislation. No definitive
view has been reached on the other three jurisdictions due to
concerns related to competition, regulatory issues and a lack of
sufficient evidence to properly assess the relevant criteria.
Guernsey's AIFMD regime was one of the first to be
introduced by a third country regulator. The Guernsey Financial
Services Commission (GFSC) has since signed bilateral
co-operation agreements with 27 EU/EEA securities regulators for
the supervision of AIFs following ESMA's approval of the
arrangements in July 2013.
Observing a recent discussion between the children of a successful entrepreneur, I was reminded once again of the potential impact of family members being provided with differing information about the family enterprise.
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