While EU jurisdictions will need to deal with the implementation
of the Alternative Investment Fund Managers Directive (AIFMD),
Jersey-based managers and funds will be able to carry on business
The ongoing crisis in the Eurozone and the increasing agenda of
regulatory reform have unknown outcomes, however both have the
potential to fundamentally change the asset management industry.
Who would have predicted at the beginning of the financial crisis
that the regulatory reform that was initially aimed at the banks
would transform virtually every segment of the financial services
industry? The AIFMD introduces comprehensive regulatory changes for
alternative fund managers operating in, or marketing into, the
Jersey has a long and established history of providing financial
services to the EU markets, especially the UK, and has developed
specific expertise in alternative asset classes; particularly in
private equity, real estate and hedge funds. While EU jurisdictions
will be required to deal with the implementation of AIFMD, subject
to EU member state agreements being in place Jersey-based managers
and funds will be able to carry on business as usual until at least
2018 through private placement regimes.
At the time of writing there is still a great deal of
uncertainty regarding the implications and implementation of the
AIFMD, however we are seeing that clients are looking for a
jurisdiction that can offer an existing regulatory framework
governing such vehicles which allow immediate access to the target
investor markets but without the need to adapt to the AIFMD in the
The degree of choice and flexibility offered by Jersey enables
managers to choose a less onerous and more cost effective solution,
whilst at the same time offering those managers wishing to operate
within the directive the means to combine the current benefits of
the jurisdiction with an AIFMD compliant product.
Jersey will continue to maintain manager and investor confidence
through stability, high standards of supervision, and responsible
and appropriate regulation. The jurisdiction's expanded product
range and flexible regulatory regime offers a route to market that
is attractive to all industry participants located in Europe, Asia
and Latin America.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).