Jersey-based fund managers flock to Brexit friendly regime

Jersey-based fund managers flock to Brexit friendly regime

Jersey has seen an uplift in international non-EU managers, that includes those in the US, Asia (and soon the UK), using its regime as a means of marketing into Europe, as well as a rise in EU managers structuring through Jersey to tap into the UK markets, according to figures released by its regulator.

Jersey Finance said in a statement that it has seen a “growing number of Jersey-registered fund managers” opting to “future-proof” their strategies and market into Europe through national private placement regimes (NPPRs) under the Alternative Investment Fund Managers Directive (AIFMD).

As at December 2017, 149 alternative investment fund managers (AIFMs) had been authorised in Jersey to market into Europe through NPPRs, up 17% compared to December 2016, the statement said.

Over the same period, the total number of Jersey alternative investment funds (AIFs) being marketed into Europe through NPPRs also increased significantly to stand at 291, representing a 15% year-on-year increase.

There are now a total of 31 depositaries  authorised in Jersey under AIFMD, a figure that has risen 7% over the year.

Geoff Cook, chief executive, Jersey Finance, pictured left, said: “We’re continuing to work together with the fund management communities both in and outside of the EU, so it’s pleasing to see such a strong uptake of Jersey’s tried-and-tested private placement regime.

‘Future-proof ‘

“Five years on since AIFMD was introduced, it’s a route that is proven to work, providing alternative managers with a clear, effective and future-proof means of accessing EU investor capital.”

Mike Byrne, chairman, Jersey Funds Association, added that Jersey is “extremely well positioned” to play a positive role in supporting alternative managers right across the private equity, real estate, hedge, debt and infrastructure asset classes, particularly against a Brexit backdrop.

UK market

“Whilst these latest figures reinforce that Jersey has a key role to play in giving non-EU managers, including those in the US, Asia and soon the UK, with a means of marketing into Europe, we are also seeing EU managers structuring through Jersey to tap into the vital UK market,” said Byrne.

The use of private placement as a means of accessing EU capital in the context of Brexit will be one of the issues discussed at the 2018 Jersey Finance Annual London Funds Conference set to be later this year (24 April), which will also examine how market trends, shifts in regulation and protectionist movements are challenging and shaping the global funds industry.