Jersey's and Guernsey's status as pre-eminent international financial centres for investing in the UK and Europe post-Brexit has been reaffirmed following the new Memorandum of Understanding ("MoU") for each jurisdiction signed on 12 March 2019.
The separate MoUs between the UK Financial Conduct Authority (FCA) and each of the Jersey Financial Services Commission ("JFSC") and the Guernsey Financial Services Commission ("GFSC") provide certainty that Jersey and Guernsey domiciled funds will still have access to UK investors and capital post-Brexit, once EU law ceases to apply in the UK. Jersey and Guernsey funds will be able to continue marketing to UK investors using the private placement regime.
In addition, Jersey and Guernsey domiciled funds will continue to have access to European investors in the same way as usual through the National Private Placement Regimes ("NPPRs") of EU Member States. As each of Jersey and Guernsey is a 'third country' to the EU, NPPRs provide a quick, efficient and low-cost alternative to the full Alternative Investment Fund Managers Directive (AIFMD) passport. These bilateral agreements between the JFSC or the GFSC and EU Member States' regulators mean that Jersey and Guernsey domiciled funds can be marketed into the EU through a tried and tested regime. Brexit will not impact upon these agreements.
This demonstrates that Jersey and Guernsey continue to provide stability, confidence and certainty for managers as leading funds jurisdictions during uncertain times.
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