ESMA's advice will now be considered for approval by the
European Commission, Parliament and Council before they activate
the relevant provision in the AIFMD to extend the passport through
a Delegated Act.
Guernsey Finance Chairman Lyndon Trott, who also serves as
Guernsey's Deputy Chief Minister, said the latest ESMA
recommendation was excellent news for the island's fund
industry and evidence once again that Guernsey continued to meet
the very highest international standards and offer an excellent
"I am very pleased that ESMA has confirmed its positive
assessment of Guernsey. This demonstrates confidence and trust in
our regulatory framework and supervisory practices, and in our
track record as a jurisdiction that meets the highest international
standards," said Mr Trott.
"The leadership of the Guernsey Financial Services
Commission, with the support of industry and government, has again
enabled Guernsey to be evaluated as a trusted jurisdiction that
continues to provide a stable and competitive environment for
"While there is still a further administrative stage of the
process to go through, this is a positive and encouraging
development for Guernsey as a centre of excellence for private
equity and fund administration. These are businesses that have real
substance on the island and form an important part of our economy.
This positive assessment from ESMA demonstrates our constructive
working relationship with EU institutions and bodies when they
treat us as a third country."
Last July, ESMA confirmed that Guernsey had demonstrated its
ability to satisfy the criteria under AIFMD last July, alongside
Jersey and Switzerland, but that it needed more time to complete
assessments for the US, Singapore and Hong Kong. At the beginning
of 2016 ESMA was directed by Olivier Guersent, Director General at
the EU Commission's financial services division, to complete
the assessments of the three outstanding countries and for the
second wave of nations - Japan, Canada, Isle of Man, Cayman
Islands, Bermuda and Australia - by 30 June.
In addition to Guernsey, ESMA has offered unqualified and
positive assessments to Canada, Japan, Jersey and Switzerland. Four
other jurisdictions - Australia, Hong Kong, Singapore and the USA
have received qualified positive assessments.
Andrew Whittaker, Chairman of the Guernsey Investment Fund
Association (GIFA), said ESMA's recommendation demonstrated
confidence and trust in Guernsey as a centre for funds
"ESMA's advice assures continued marketing access to
the wider EU market for Guernsey domiciled funds, which provides
fantastic stability for investors and managers alike," said Mr
Since AIFMD came into force in 2013, Guernsey has adopted a
'dual regime' whereby there are two parallel regulatory
regimes for investment funds: the existing regime remained in place
for managers and investors not requiring an AIFMD fund, including
those using EU national private placement regimes and those
marketing to non-EU investors, and ran parallel with an opt-in
regime which is fully compliant with AIFMD.
Guernsey Finance Chief Executive Dominic Wheatley added:
"Guernsey has now come in the top tier of two successive ESMA
reviews of third countries and these, together with the recent
review by MONEYVAL, demonstrate the quality of financial services
regulation in Guernsey. It is also important to note that Guernsey
is one of only five jurisdictions to receive an unqualified and
positive assessment from ESMA in this most recent advice.
"This clearly offers a greater degree of certainty for
investment managers utilising Guernsey for funds which are then
sold into the European Union. Unlike some competitor jurisdictions,
Guernsey has a financial services industry with substance where the
majority of governance and administrative functions are performed
within the Island."
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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