Private Equity Administrators (PEA) shares some good news from ESMA

ESMA – European Securities and Markets Authority – have announced their recommendation to grant Guernsey & Jersey a ‘third country’ passport under the AIFMD – Alternative Investment Fund Managers Directive, allowing Guernsey access to a level playing field with Europe.

ESMA assessed  six jurisdictions and recommended as follows:

  • Guernsey & Jersey – “Passport extension, no obstacles existed”
  • Switzerland – “Needs to enact pending legislation to achieve ‘no obstacles’.”
  • USA, Hong Kong & Singapore – “No definitive view reached due to concerns on competition, regulatory issues and a lack of sufficient evidence to support the criteria”.

 Why is this such good news?

Well firstly gone is all of the ambiguity about Guernsey’s status under AIFMD and ESMA’s recommendation provides a clear endorsement of the robust AIFMD framework that has been established here.

So whether you are a fund manager marketing exclusively to Europe and requiring full AIFMD compliance, or marketing to a mix of both EU and non-EU investors, Guernsey’s will be able to provide a fund structuring solution for both.

This is great news for the largest managers who have continued to support Guernsey’s global fund industry through this period of uncertainty recognising the quality of the professional fund services found here. There are more than 50 fund managers, administrators and custodians servicing assets valued at over £222.3 billion. A well-trodden path of excellence for managers of all types.

How long will Guernsey be waiting for the final YES!?

Well ESMA’s recommendation to extend the third country passporting rules under AIFMD to Jersey and Guernsey AIFs and AIFMs will now need to be drafted into appropriate legislation for the formal approval of the European Parliament and Council of Ministers and this could take around six months. But it is anticipated that the final time lines for implementation might be delayed further until such time as ESMA completes its review of all of the non-EU countries to whom the final Delegated Act will apply.

For a deeper discussion on your structuring needs, feel free to call Joanne or James in Guernsey or Peter in Denmark if you would be interested in hearing more:

Guernsey James Orrick, Director

+44 1481 730988 jo@peadm.com

 

Guernsey Joanne Gill, Director

+44 1481 730988 jg@peadm.com

 

Denmark Peter Toyberg, CEO

+45 70 20 40 61 pt@peadm.com

 

Further reading:

ESMA – http://www.esma.europa.eu/content/ESMA-advises-extension-AIFMD-passport-non-EU-jurisdictions

Guernsey Finance http://www.guernseyfinance.com/press-room/news/2015/07/esma-advice-positive-on-guernsey-aifmd-passport-extension/

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