Guernsey greenlights AIFMD regime

Fund managers based on the island can begin applying for an AIFMD-equivalent fund vehicle in January. 

Guernsey regulators approved a new funds regime that preserves local fund managers’ access to EU investors in the long-term.

The new regime matches rules embedded in Europe’s Alternative Investment Fund Managers Directive (AIFMD), which took effect in July.

GPs based in non-EU countries that do not feature a fund regimes equivalent to the directive are restricted from marketing in Europe beginning in 2015.

Guernsey worked two years ahead of that deadline to “provide Guernsey managers and depositaries with certainty as soon as possible,” said Fiona Le Poidevin, chief executive of Guernsey Finance – the promotional body for the island’s finance industry.

In addition to Guernsey’s traditional fund vehicles, popular with GPs due to the speed and efficiency in which they can be setup, fund managers can begin applying for a tougher AIFMD-equivalent Guernsey vehicle on January 2.

The vehicle may also make it easier for Guernsey-based fund managers to access EU investors via private placement rules, which some EU sovereigns are tightening in conjunction with AIFMD implementation.

Guidance on the new vehicle, as well as the forms needed to be completed, can be found on the Guernsey Financial Services Commission’s website.