A recognised path
Jersey–based fund managers are located in a ‘third country’ from a European Union (EU) perspective and therefore the full scope of The Alternative Investment Fund Managers Directive (AIFMD) need not apply. This means that they may not be required to comply with certain more onerous elements, such as reporting and disclosure of remuneration. Importantly, the benefits of a Jersey manager can apply wherever the funds themselves are domiciled, be it in Jersey or elsewhere.
Put simply, access to Europe through the National Private Placement Regimes (NPPR) using a Jersey manager is a well-established model offering clear advantages.
NPPR is a recognised path and a model that has worked, and continues to work extremely well. At the end of March 2022, there were 200 managers in Jersey marketing 369 alternative investment funds into the EU alone using the NPPR route (Jersey Financial Services Commission, JFSC). South African managers account for the seventh largest pool of capital globally in respect of Jersey-based fund promoters (Monterey Jersey Fund Report, June 2021). This includes firms such as Stanlib, Ashburton, Novare, Ethos, Westbrooke and Fountainhead and we very much look forward to building on these foundations.
Figures from Preqin show that 55% of European investors in alternative real estate and 62% in private equity are based in the UK, Switzerland or the Netherlands. Since January 2021, only one of these three countries is now in the EU, therefore the ongoing onerous regulation and expense in order to access only one or two EU Member States is disproportionate when a simpler alternative is available. The reality is that few managers need blanket access to all EU Member States. In cases where they do, then an onshore option works best, but with European Commission figures suggesting that 97% of managers actually market to three EU markets or less, then private placement offers a very credible, fast, cost-effective and sensible option.
A Global Hub
For decades, Jersey has set itself apart as a reputable, centrally located jurisdiction for investors from key global markets. Jersey provides excellent third country access to the EU market through the use of NPPR to non-EU countries.
Assets under administration in Jersey
Elliot Refson › Head of Funds, Jersey Finance
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Elliot is focussed on defining the strategy and execution of marketing Jersey as both a domicile and destination for hedge and private equity management companies and funds based in the UK, US, Switzerland and Europe.
Allan Wood › Global Head of Business Development, Jersey Finance
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As Global Head of Business Development, Allan is responsible for overseeing the promotion of Jersey as a leading international finance centre across key strategic overseas markets including Africa, the Gulf region, Greater China, the US and the UK.
Dr Rufaro Nyakatawa › Business Development Consultant – Africa, Jersey Finance
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Based in Johannesburg, Rufaro’s primary focus is developing the strategy for Jersey Finance’s engagement in the South African market. She also plays a vital role in supporting the organisation’s wider activity across the continent. With more than 20 years of experience in wealth management (private banking and financial planning) across Southern and West Africa, her most recent role was with Nedbank Wealth Management in South Africa.