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The capability of Channel Islands fund practitioners needs to be flaunted, delegates heard at this year’s BusinessLife.co Channel Islands Fund Forum – sponsored by KPMG in the Channel Islands.
The capability of Channel Islands fund practitioners needs to be flaunted, delegates heard at this year’s BusinessLife.co Channel Islands Fund Forum – sponsored by KPMG in the Channel Islands.
The fourth annual event of its kind, titled ‘Navigating Through the Waves of Change’, was held at the Hotel de France in Jersey and attended by over 150 fund managers, investors and other industry leaders from across the Channel Islands. It explored the current funds landscape, assessing global industry trends and regulatory developments in Europe and the US from a Channel Islands perspective.
Through in-depth presentations and panel debates, the event assessed the Channel Islands’ current position in the market and discussed future implications.
“In terms of the macro environment the focus is changing for managers and investors with a shift towards investment solutions. The increasing regulatory pressure from the EU and US will create a cost and compliance burden that is changing both business models and trading strategies,” said Heather MacCallum, executive director at KPMG in the Channel Islands.
Raymond Haines, Head of European strategy and research at State Street looked at the bigger picture in investment management, including global trends such as a growth in the use of alternative structures, including ETFs (Exchange-traded Funds), while Adam Jacobs, Head of Market Regulation at AIMA (Alternative Investment Management Association) looked at regulatory developments in the EU.
“Regulation is a core focus and we are far from clear of the post-financial crisis period of rulemaking. AIFMD (The Alternative Investment Fund Managers Directive) is still a key focus and as the presenters noted, we can expect a couple of years of regulatory arbitrage,” said Ms MacCallum.
A panel discussion, chaired by Ben Robins, Partner at Mourant Ozannes, noted that it was difficult to predict specific trends at this stage, but that it is expected that AIFMD will remain exclusive to Europe for at least the next ten years. It was noted, optimistically, that few countries had closed their private placement regime.
A second panel discussion, chaired by Tony Mancini, Executive Director at KPMG in the Channel Islands, looked at the impact of the US, with a focus on FATCA (The Foreign Account Tax Compliance Act) and Dodd-Frank.
“It’s clear that FATCA, as a consequence of the associated inter-government agreements, is here to stay and it will be interesting to see how it develops. What is clear is that all Channel Islands funds will be required to take action, regardless of any US connections or otherwise,” said Mr Mancini.
The event underlined how the Channel Islands were successfully navigating through these changes in both the approach regulation and product innovation.
“An important message, which this forum addressed, is that the Channel Islands are very well-positioned to face these challenges. We have the expertise, particularly in risk management, and should not hide our skills under a bushel,” she said.
“While our market is particularly dominated by private equity and real estate funds, we are embracing new structures and specialised new asset classes including energy, infrastructure, cleantech and health.
We need to continue to innovate and to focus on optimum client service,” said Ms MacCallum.
