Jersey plans to launch a new fund regime

The island is the latest fund domicile to race to provide EU marketing options.

Jersey is planning to launch a new fund regime to facilitate marketing into Europe this summer.

“Jersey is … in the process of exploring the swift introduction of a manager-led product similar to the Luxembourg’s Reserved Alternative Investment Fund (RAIF),” Ben Robbins, Jersey Funds Association chair told pfm.

In 2015, Luxembourg announced its new AIF vehicle, the RAIF, which is expected to be adopted in June. The RAIF should speed up the establishment of funds because it does not need approval from Luxembourg’s financial regulator, the CSSF.

Since Luxembourg’s announcement, other jurisdictions have been racing to provide alternative products to fund managers.

In February, Malta launched the Notified AIF (NAIF). The NAIF will not require licensing by the Malta Financial Services Authority and will not be subject to ongoing supervision. This regime is expected to be applied by the summer.

More recently, Guernsey launched a new fund category, the Manager Led Product (MLP). The MLP regime sits alongside the island’s existing products for open-ended and closed-ended funds. It is a European-aligned regime, matching the requirements of the European Union’s Alternative Investment Managers Directive (AIFMD) to the regulatory obligations of the fund manager, rather than the direct regulation of funds themselves, as reported by pfm.

The Channel Islands are also for waiting the European Securities and Markets Authority’s decision on whether to grant they will be granted third-country AIFMD passports.

“If ESMA decides to grant Jersey with a third-country AIFMD passport this summer it will enable us to offer the full range of marketing solutions to managers,” said Robbins.

Find out more information about Jersey and Guernsey in pfm’s July/August magazine out on July 1 2016.