Jersey refutes AIFMD onshoring claims

The popular fund domiciles trade bodies have called into question the validity of a recently published report that claims the Channel Islands are “not faring very well” in a post-AIFMD climate.

A report claiming that the Alternative Investment Fund Managers Directive (AIFMD) is driving private funds onshore has been contested by Jersey Finance and the Jersey Funds Association.

The report, commissioned by the Association of the Luxembourg Fund Industry (ALFI), says that more GPs are domiciling their funds within Europe to take advantage of the AIFMD’s marketing passport.

However, the Jersey trade bodies refute that claim and suggest that the data presented in the ALFI report is out of date.

“The recently commissioned report appears to base its findings on historic data from 2010 to 2013, a period of pre-AIFMD uncertainty before future third country marketing routes into the EU were confirmed, and on ‘estimates’ of the consultant mandated to prepare the report,” said Geoff Cook, chief executive at Jersey Finance.

The Jersey trade bodies present data from the independent Monterey Insight Fund Report for 2014 to back up their claim. The report confirmed that 171 new funds were launched in Jersey in the period from June 2013 to June 2014, compared to 78 in the same period from June 2012 to June 2013. The total value of funds being administered and managed in Jersey has also grown by around 5 percent year-on-year, according to the official statistics of the Jersey Financial Services Commission.

An ALFI spokesperson was unable to respond to a request for comment by press time.