The recent recommendation from ESMA is significant and positive news for Jersey as it means that when the recommendation is implemented, Jersey will be able to operate AIFMD compliant passporting, offering a broad range of structuring and marketing options to fund managers regardless of their target market or strategy.
It is a great testament to the hard work that has been undertaken across our island’s financial landscape, with the Jersey government, regulator and industry working collaboratively and with conviction to reach this point. ESMA’s advice concludes that there are no apparent obstacles to the passport being extended to AIFMs or AIFs here in Jersey, where we have a thriving Alternates fund community. The endorsement of the Pan European securities regulator is a significant vote of confidence in Jersey’s governance, substance and sound regulation.
The news is bolstered by the recent performance in the Jersey funds industry and is a ringing endorsement to the capabilities and strength of our alternative fund offering of AIFMD compliant or National Private Placement equivalent regimes (NPPR). Managers can continue to look assuredly at Jersey as a central base from which to offer routes to investors in Europe and beyond, regardless of their strategy and target regions as well as benefit from the flexible regime we offer for alternative funds business.
As and when the passport becomes a reality Jersey is as well placed as it could possibly be, with Fund promoters and managers able to enjoy the best of all worlds, without the risk of relying on the increasingly fragile territory of reverse solicitation.
Recent funds performance has seen a surge of new deals coming into the jurisdiction with Real Estate, PE and Hedge the favoured asset classes, attracted by the certainty and stability of a Globally recognised and Europe wide approved platform.