On the 30th July the European Securities and Markets Authority recommended that Jersey should be included in the first wave of 'third countries' whose managers can apply for an AIFMD passport. This passport will allow owners to enter the EU to market their Alternative Investment Funds (AIF) to investors.

ESMA's initial assessments encompassed only six jurisdictions - Jersey, Hong Kong, Guernsey, Singapore, Switzerland and the USA - selected on the basis of factors including the efforts by stakeholders from these countries to engage with ESMA's process and the depth of activity and relationships between the countries and the EU in this area.

The advice concludes that no obstacles exist to the extension of the passport to Jersey, Guernsey and also to Switzerland following certain amendments to Swiss legislation.

What does this mean for our clients?

In reality, the introduction of the passport on a large scale is still some way off. It is great news for alternative investment fund managers who currently operate in the Channel Islands, or who would like to, and wish to use the passport when it is introduced.

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