This page contains a Flash digital edition of a book.
FUNDS


Geneva. Right: Jersey


“Many European fund managers are considering relocating to avoid the additional burden of full AIFMD compliance”


such as Jersey or Guernsey, and use private placement regimes to service EU customers who are happy to make their own investment decisions. They could also potentially service their US customer base from that non-EU jurisdiction as well. “A lot of fund management groups


will look to fund-raise again early next year, and they are likely to make a decision then,” he says. Of course, the Channel Islands face competition. Relocating fund managers who do not require AIFMD compliance do have a number of choices. “There are a number of viable locations that fund managers can move to, including the Channel Islands, Geneva, Hong Kong and Singapore,” says Robert Kirkby, Director of Advisory, KPMG Channel Islands Limited. “And a lot depends on their business circumstances, such as whether they need to be close to London, as well as their personal circumstances – but we would certainly be keen to attract more to the Channel Islands,” Here, he points out that the Channel Islands can offer the infrastructure sought


by managers in terms of service providers, desirable residential properties, office space and communication links. Both Jersey and Guernsey also already house thriving financial services sectors. “Migrating fund managers tend to be


relatively small businesses, and a number entering the Channel Islands would not distort the market,” he adds. And Edward Devenport, Partner at


Mourant Ozannes and Vice President of the Jersey Funds Association, adds: “As a leading jurisdiction for funds, we offer a developed infrastructure and the right spread and range of service providers required, from accountants to lawyers and fund administrators, which could comfortably accommodate an influx of funds businesses.” Similar claims are voiced in Guernsey.


“Fund managers looking to move outside the EU will look for well regulated jurisdictions, and Guernsey is one of those,” says Davy. “Businesses here should be able to cope with an influx of more fund management businesses. One concern may be the size of our population, and population control and


caps are being assessed, but if the local pool of people proves insufficient then we will recruit from outside Guernsey.” Both Jersey and Guernsey are also


preparing themselves to ensure that domicile funds managers who want to become AIFM- compliant have every opportunity to do so. “When it comes to AIFMD, one of the key requirements for non-EU territories such as Jersey to qualify for an EU marketing passport will be that there are cooperation agreements in place with EU member states,” says Devenport, pointing out that this will now be a prime area of attention. And Cowley-Grimmond adds: “We already


have a number of tax information exchange agreements in place with EU member states, and this will be very important in the future. The directive also calls for custodians and depositories to be based where the fund is domiciled, and as we have a thriving depositaries sector, we will be able to meet that requirement here.” Meanwhile, the G20’s own campaign to


clamp down on less-regulated jurisdictions, and other moves to tighten regulation, are


April/May 2011 businesslife.co 33 ➔


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78