A new Memorandum of Understanding (MoU) signed between Jersey’s financial regulator, the Jersey Financial Services Commission (JFSC), and the UK’s Financial Conduct Authority (FCA) should give fund managers added certainty around accessing UK investor capital through Jersey in the lead up to Brexit, according to Jersey Finance and the Jersey Funds Association (JFA).
The MoU, signed this week (Monday 11 March) allows funds domiciled in Jersey to continue to be marketed to UK investors through private placement unimpeded, should EU law cease to apply in the UK in the event of a ‘no deal’ Brexit or at the end of any implementation period.
Commenting on the MoU, Jersey Finance CEO, Joe Moynihan, said: “This MoU is a precautionary measure and should give managers using Jersey for their fund structuring added confidence that access into the significant UK investor market will continue uninterrupted and irrespective of how Brexit unfolds. It’s a reflection of the efforts Jersey puts in to working with key stakeholders in the UK to support international investment.”
Mike Byrne, Chairman of the Jersey Funds Association added:
“With the UK being such a vital market for Jersey, this is an important measure that underlines Jersey’s commitment to supporting managers looking to market into the UK. At the same time, of course, we are also successfully supporting a growing number of managers marketing funds into the EU, and it is this flexibility and certainty that is helping to future-proof our industry and drive growth across the alternative asset classes, as recent statistics show.”
The JFSC’s full statement can be read here.