CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Guernsey Plans Dual Investment Regime For AIFMD

Guernsey Plans Dual Investment Regime For AIFMD

by Jason Gorringe,, London

08 November 2012

Guernsey is planning two parallel regulatory regimes for investment funds to compensate for the forthcoming entry into force of the European Union's (EU) Alternative Investment Fund Managers Directive (AIFMD).

The regimes will allow Guernsey to simultaneously offer a regime that fully complies with the AIFMD, whilst maintaining the existing regulations in place for investors and managers that will not be impacted by the AIFMD.

The AIFMD was agreed by the European Parliament and the European Council in October 2010 and will impose registration, reporting and initial capital requirements to enhance industry safeguards. Under the directive, a European AIFM with a portfolio of more than EUR100m (USD140m) will be required to obtain an authorization from national authorities to operate. This permit will entitle them to market funds throughout the EU single market.

It was previously anticipated that the final (Level 2) rules for the detailed implementation of the AIFMD would be published in early autumn but it is now believed that the publication of these may be deferred until December, fuelling speculation that the July 2013 deadline for implementation of the Directive itself may also be put back to allow for a greater transition period.

Fiona le Poidevin, the Chief Executive of Guernsey Finance, the promotional agency for the island's financial services industry, commented: “As a leading international funds centre, Guernsey has been closely following the development of AIFMD, has been active in the debate in Brussels and is well advanced in its preparations to offer an AIFMD-compliant regime from as early as July 2013. With the continued delay to the publication of the rules, it is important for existing clients that Guernsey is clear on its intentions now."

“It is our intention that Guernsey will operate a full AIFMD equivalent regime for those EU investors and managers who are obliged to take this route or any investors or managers who choose this as their preferred option. For non-EU investors and managers, investing in the EU and globally, there will remain a parallel regime with its own appropriate set of regulations. This will also be available to EU investors who are able to take advantage of the national private placement regime in the immediate term or those who fall outside the scope of AIFMD."

“What we are planning to do is provide clients with the flexibility to choose a regime which best suits their needs from a jurisdiction that has always regulated managers and funds across all sectors to leading international standards. We believe that this proposition will prove very attractive and as such, will ensure that Guernsey remains a leading global fund domicile in the future.”

Neale Jehan, Executive Director at KPMG in Guernsey and Chairman of the Technical Committee of the Guernsey Investment Fund Association (GIFA), added: “As a non-EU jurisdiction with close proximity and business ties to the EU, it is essential that we seek to comply with AIFMD for those clients obliged to or who wish to take advantage of the regime in the coming years. However, we must recognize that we have clients whose business does not touch the EU at all in terms of management or marketing of funds and it is important that these clients have the choice to elect to fall under the AIFMD regime or remain outside, as is their right. In being able to offer both EU and non-EU solutions from one location, Guernsey will be ideally placed to serve the global fund industry.”

TAGS: tax | investment | investment funds | hedge funds | international financial centres (IFC) | Guernsey | offshore | legislation | regulation | alternative investment

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »