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Jersey's European market access is further strengthened by ESMA advice

20 July 2016

Jersey's European market access is further strengthened by ESMA advice

In a move that further underlines the regulatory standing of the Channel Islands, the European Securities and Markets Authority (ESMA) has today published its advice to the EU Commission, Parliament and Council, confirming that there are no obstacles impeding the application of the AIFMD passport to Jersey and its sister Island Guernsey.

This puts the Jersey amongst only five countries (together with Canada, Japan and Switzerland) out of a total of 12 assessed non-EU jurisdictions, to have received such a status from ESMA.

ESMA published its first set of advice on the application of a third country passport to six non-EU countries (Guernsey, Hong Kong, Jersey, Switzerland, Singapore and the US) in July 2015. The EU Commission subsequently asked ESMA to widen its assessment to a further six countries as well as providing additional assessment on all 12 non-EU supervisory authorities and their track record in ensuring effective enforcement, as well as data on the expected inflows of funds by type and size into the EU.

The vindication of the international standing of the Channel Islands and in particular Jersey is a positive sign for both managers and investors in terms of offering a broad range of marketing and structuring solutions, whether they are seeking to serve European investors (via private placement regimes through the AIFMD) or global investors (where there is a continued ability to market to non-EU investors with no AIFMD implications at all).

This development comes off the back of recent positive assessments by MoneyVal, and is a demonstration that in a post-Brexit environment, the regulatory relationships of the Channel Islands' regulators with EU institutions remain a positive element of their strengths as third countries. 

For more information please read the ESMA's full opinion, published here

 

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