ESMA approves Jersey AIFMD cooperation agreement

The European Securities and Markets Authority (ESMA) has approved a Memorandum of Understanding with Jersey, which means it can continue to deliver alternative investment funds into the EU after the AIFMD comes into effect in July.

The Memorandum remains in effect until at least 2018, and was negotiated with the 27 members of the EU as well as Croatia, Iceland, Liechtenstein and Norway. John Harris, director general of the Jersey Financial Services Commission will sign the deal on behalf of the jurisdiction.

Jersey introduced specific regulations in April this year to mirror AIFMD criteria, to ensure compliance. The island will also continue to offer a separate regime that lies outside the scope of AIFMD for those investors seeking alternative investment funds, which may be marketed into jurisdictions elsewhere in the world other than the EU.

Mike Jones (pictured), deputy director of Securities at the Jersey Financial Services Commission, said: “It has always been Jersey’s intention to be in the first tranche of jurisdictions to sign this AIFMD cooperation agreement and I am delighted that, following months of preparation work and constructive engagement with ESMA and the regulators of individual EU Member States, that agreement is now in place. It puts Jersey in a very strong position and ahead of schedule in terms of the AIFMD introduction date on 22 July.”

Alternative asset classes, including hedge funds, private equity and real estate are estimated to account for some three-quarters of funds business done in Jersey.

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