Jersey could see a boost in investment funds business over the
Brexit negotiation period because of the certainty and stability of
its third-country position compared to the uncertainty over that of
the UK, says Ogier funds partner Emily Haithwaite.
The outcome of the negotiations of the UK's separation from
the EU – which have formally begun now that Article 50 of the
Lisbon Treaty has been triggered – is unclear, and many
UK-based fund managers are left unsure whether their fund
structures will continue to allow access to EU investors.
But Emily says that Jersey's ability to offer access to EU
investors via existing National Private Placement Regimes and its
endorsement by ESMA for an AIFMD passport, gives fund managers a
higher degree of certainty.
She said: "Many UK-based managers are hoping that
structural solutions to EU distribution will still be available
post-Brexit, but nobody knows what those negotiations will produce
and what the timing of those will be, so in the interim, Jersey is
well placed to service UK-based fund managers who are thinking
about raising funds within this two or three-year transitional
"We are more developed in terms of our third-country
thinking than the UK.
"The National Private Placement Regimes are working - fund
managers are able to market their funds within the regimes that are
in place, and this route has been a solution for those managers
who, for whatever reason, don't need the full passport or for
whom the cost is prohibitive but also in terms of reducing the
burden of operational set-up and ongoing reporting.
"Many of our clients who have tried the passporting route
have come back to private placement having realised that they can
market to their target EU investors within the national private
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Now that the United Kingdom has served notice to leave the European Union under Article 50 of the Lisbon Treaty, managers of offshore funds have a clearer timetable for when Brexit will happen, with the UK scheduled to leave the EU in March 2019.
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