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10 September 2015

Hedgeweek: Guernsey extends market access to EU countries under AIFMD

Guernsey has extended market access to EU AIFMs and AIFs doing business in Guernsey.

The move follows the European Securities and Markets Authority (ESMA)’s advice to the European Council, the European Commission and the European Parliament that the EU Alternative Investment Fund Management Directive (AIFMD) passport should be extended to Guernsey.
Guernsey’s Government, the States of Guernsey, has now amended its Investor Protection regulations for Alternative Investment Fund Managers (AIFMs) and Alternative Investment Funds (AIFs) based in EU Member States that have fully implemented AIFMD in order to enable easier movement between Guernsey and EU markets.
Guernsey’s Chief Minister, Deputy Jonathan Le Tocq, says: “When I met with EU Capital Markets Commissioner Hill in May, I set out Guernsey’s commitment to supporting free movement of capital and trade. Our amendment to Investor Protection regulation extends Guernsey market access to EU AIFMs – a move that is both sensible and is a further demonstration of that commitment.”
Guernsey Finance Chief Executive, Dominic Wheatley, says industry welcomed both the recent ESMA recommendation and the amendment to the Island’s Investor Protection regulations.
“The Guernsey funds sector is international, highly professional and well-regulated. A 2015 report by KPMG, International Capital Flows, analysed the economic benefits provided to the European economy by the Guernsey funds sector and demonstrated that Guernsey was a well-regulated conduit for EUR130 billion of funds into the EU – half of which is drawn from outside of Europe.
ESMA published its advice in relation to the application of the AIFMD passport to non-EU AIFMs and AIFs on 30 July. It concluded that no obstacles exist to the extension of the passport to Guernsey and Jersey, while Switzerland will remove any remaining obstacles with the enactment of pending legislation. No definitive view has been reached on the other three jurisdictions due to concerns related to competition, regulatory issues and a lack of sufficient evidence to properly assess the relevant criteria.

© Hedgeweek

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