Regulator to open up European market to Jersey funds sector

Friday 31 July 2015

Jersey has been given a welcome boost by the European financial regulator with a recommendation for a new licence for the funds industry to access European investors.

The “AIFMD passport” would allow fund managers to target investors across Europe on the same basis as EU countries – and it means that the Island has an example over competitors such as the Cayman Islands, who have not been given the same standard.

The growing fund management sector is a growing part of the Jersey economy – last year it made a net profit of £35 million, and employed more than 400 people.

Of all the finance industry sub-sectors, employees in the funds sector are the best paid – in 2014, the average employment cost per full-time worker was £96,000, and the average bonus was £21,200.

Jersey’s financial services regulator – the Jersey Financial Services Commission – says that the authorities' recommendation that Jersey is granted an “AIFMD passport” is the result of hard work with European authorities.

Mike Jones, Acting Policy and Strategy Director, JFSC said: “We are delighted with this announcement from ESMA recommending Jersey be granted a ‘third country’ passport, which positively recognises the Island’s robust AIFMD framework and fully compliant regime which has been introduced.  

“Jersey is one of Europe’s leading centres for alternative funds business and the JFSC is committed to supporting the industry by ensuring we have the right frameworks in place to ensure long term success.” 

After the recommendation from the European Securities and Markets Authority, the European Commission will put forward legal changes to the European Parliament and the European Council, who will have three months to make the formal decision coming into force.

Assistant Chief Minister Philip Ozouf, who has responsibility for the finance sector, said: “ESMA's announcement is further confirmation that Jersey remains at the forefront of professional services for the global funds industry.

“This kind of endorsement does not happen by accident; building such a robust AIFMD framework is the result of a great deal of hard work and of the joined-up approach adopted by government, the regulator and the industry.”