This could be the year in which Luxembourg's position as a European funds jurisdiction comes under some challenge – promoters and managers have had time to consider options during the Global Pandemic, and it's likely that changes that have taken place in other offshore jurisdictions such as Jersey, Guernsey, Cayman and Bermuda have made them more attractive as an alternative to Luxembourg. The answer is not just in the lower costs, quick turnarounds, familiar language or the Anglo-service culture – a big consideration is that 97% of managers market to three European jurisdictions or fewer; making the NPPR route a better option than the full AIFM experience. With the work that has gone into marketing the Jersey Private Fund and Guernsey Private Investment Fund in particular, this could be an interesting year for Channel Islands funds.

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