Jersey's Financial Services Commission has signed an agreement with the UK financial regulator to ensure that Jersey's investment funds industry will still be able to market itself in the UK after Brexit.
The Memorandum of Understanding (MoU) with the Financial Conduct Authority (FCA) will come into effect in the event that EU law no longer applies in the UK, which could be due to a ‘no deal' Brexit or at the end of any transitional period once the UK has left the EU on an agreed basis.
The agreement replaces an existing MoU between the JFSC and FCA, which was facilitated originally by the European Securities and Markets Authority under the Alternative Investment Fund Managers Directive (AIFMD).
We are very pleased to once again be able to demonstrate our excellent co-operation with the UK authorities, keeping the UK and Jersey markets open for our world-leading funds industry, whatever the outcome of the Brexit process"
Martin Moloney, JFSC Director General, commented: "We are very pleased to once again be able to demonstrate our excellent co-operation with the UK authorities, keeping the UK and Jersey markets open for our world-leading funds industry, whatever the outcome of the Brexit process."
Joe Moynihan, Jersey Finance CEO, welcomed the agreement: "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."
On leaving the EU, the UK would effectively become a third country and the existing MoU with Jersey would no longer be valid. The JFSC has therefore acted to replace the agreement with the FCA, ensuring the Island's funds industry can continue to market in the UK.