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Jersey is ideally placed to embrace the requirements of the Alternative Investment Fund Managers Directive (AIFMD), according to Jersey Finance and the Jersey Funds Association, following the publication of the European Commission’s Level II implementation rules this week (19th December).
Acknowledging publication of the long-awaited rules, both Nigel Strachan, Chairman of the Jersey Funds Association, and Heather Bestwick, Deputy Chief Executive, Jersey Finance, re-emphasised that it would be business as usual for funds business in Jersey throughout 2013 and beyond.
As it has previously stated, Jersey, as a non-EU ‘third-country’ for the purposes of the Directive, will not need to comply with the Directive when it comes into force for EU Member States in July 2013. Instead Jersey will, until at least 2018, continue to facilitate funds business as normal within the EU through national private placement regimes. Jersey’s regulator is already fully engaged with the regulators of Member States where Jersey funds are marketed to finalise the individual agreements required for this.
Jersey is also committed to introducing the option of a fully AIFMD-compliant regime and obtaining an EU-wide passport to allow managers to market alternative funds to investors across the EU by 2015 - as soon as is possible for ‘third countries’.
At the same time, as a non-EU jurisdiction, Jersey is able to offer a further choice by maintaining a separate regime outside the scope of the Directive, for managers who don’t want to access EU capital or operate in the EU.
Heather Bestwick commented:
“The publication of these rules is long-awaited and should give EU Member States and the wider funds industry with an interest in Europe something concrete to work with and therefore a degree of certainty as they prepare to introduce the Directive in July 2013. There will now be a process of analysing and digesting the rules, as EU Member States finalise how the finer details of the Directive can be implemented.”
Nigel Strachan added:
“As far as Jersey is concerned, we remain excellently placed to continue to facilitate alternative funds business into Europe through national placement regimes, and at the same time offer flexibility to fund managers seeking to stay outside of Europe by maintaining a completely separate regime outside of the AIFMD. Meanwhile, Jersey is committed to being in the first tranche of third countries to fully comply with the Directive by obtaining an EU-wide passport by July 2015.”
The European Commission’s published Level II Guidelines are available at http://ec.europa.eu/internal_market/investment/alternative_investments/index_en.htm .
Jersey is ideally placed to embrace the requirements of the Alternative Investment Fund Managers Directive (AIFMD), according to Jersey Finance and the Jersey Funds Association, following the publication of the European Commission’s Level II implementation rules this week (19th December).
Funds professionals in Jersey will be entertained by one of the UK’s top live comedians at the Jersey Funds Association annual dinner in 2013.
Ed Byrne, who appears regularly on Mock the Week and Have I Got News For You and has presented numerous programmes for Channel 4 and MTV, will be guest speaker at the dinner which takes place on 15th March at the Hotel de France.
Further musical entertainment will be provided during and after dinner by renowned musician Joe Stilgoe and MOBO-nominated singer-songwriter Natalie Williams.
The black tie event, whose lead sponsor is bespoke fund administration and custody services provider Kleinwort Benson, will begin at 6.45pm with a champagne reception sponsored by BNP Securities Services. Silver sponsors of the event, which regularly attracts over 400 people, are Ipes, JP Morgan, JTC Group and Moore Group.
Nigel Strachan commented:
“The JFA dinner is a fantastic way to recognise the efforts of all funds professionals who continuously work hard to ensure Jersey maintains its position as a leading European funds centre. The entertainment yet again is first class and I look forward to welcoming Ed Byrne, Joe Stilgoe and Natalie Williams to Jersey in March. The dinner is always popular so I encourage people to book as soon as possible in order to secure themselves a place at a key fixture in Jersey’s funds calendar.”
For further information, please e-mail enquiries@jerseyfunds.org.
Funds professionals in Jersey will be entertained by one of the UK’s top live comedians at the Jersey Funds Association annual dinner in 2013.
The most recent figures on the performance of Jersey’s Finance Industry point once more to a stable picture, with funds business up on the previous quarter.
The statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 30th September 2012. Headline figures across all sectors of the industry include:
Heather Bestwick commented:
“We have seen a stable performance for the finance industry during the third quarter of 2012. The funds sector continues to do well with the number of funds growing by 12 during the third quarter of 2012. Specialist funds such as hedge, private equity and real estate represented 70% of the total net asset value of funds under administration at the end of the third quarter demonstrating that Jersey’s expertise in these asset classes is widely recognised and reflecting the confidence fund professionals continue to have in Jersey ahead of the introduction of the AIFM Directive.
“In these volatile times international investors are looking for stability, a secure finance environment, innovation in products and a quality service offering and Jersey continues to provide such a combination, which is helping us maintain our appeal to international investors.”
The most recent figures on the performance of Jersey’s Finance Industry point once more to a stable picture, with funds business up on the previous quarter.
JFA is delighted to announced that the date for the 2013 Annual London Funds Conference has been confirmed and will take place on Thursday 7 March at the BFI Imax Theatre.
JFA continues to work closely with Jersey Finance in obtaining high quality speakers, panel members and with the content of the event, which will cover topics that are of high importance to the industry.
Jersey Finance is currently working on sponsorship opportunities for JFA members and further details regarding this will be available shortly.
Other events already planned for 2013 include;
SuperReturn International 2013
Monday 25th February - Thursday 28th February - Intercontinental Hotel, Berlin
JFA Annual Dinner
Friday 15th March -Hotel de France, St Helier
EuroHedge Summit 2013
Wednesday 22nd May - Thursday 23rd May - Palais de la Bourse, Paris
More details about the conferences, including how you can apply for tickets, are available via the JFL website. Tickets for the JFA Annual dinner will be available shortly.
JFA is delighted to announced that the date for the 2013 Annual London Funds Conference has been confirmed and will take place on Thursday 7 March at the BFI Imax Theatre.
By Nigel Strachan, Chairman, Jersey Funds Association
Whilst global market conditions remain challenging, Jersey’s funds sector has continued to demonstrate resilience. Despite the raft of regulation being introduced across the global funds sector and concerns about difficulties in fundraising, the latest figures suggest that Jersey is keeping favour with the needs of the funds industry with assets being administered remaining around the £190bn mark.
In particular, Jersey continues to assert itself as a major player in the alternative funds space, with alternative fund classes accounting for around 70% of the total value of funds under administration in Jersey - and private equity funds alone accounting for almost a quarter of that overall total.
One key issue that remains in the spotlight for funds jurisdictions globally is the EU Alternative Investment Fund Managers Directive (AIFMD). There’s no doubt that the reach of the AIFMD is broad and significant for private equity funds that are domiciled in Europe, have an EU manager or are marketed in the EU. Whilst the Directive is intended principally to regulate fund managers, it will also inevitably impact service providers, as well as the ongoing transparency, reporting and marketing of the funds themselves.
Given Jersey’s strength in alternative funds, it is not surprising that the AIFMD is firmly on its radar too. As EU Member States go through the motions of implementing AIFMD, private equity fund professionals will be encouraged to know that Jersey, as a non-EU ‘third country’ for the purposes of the AIFMD, has been working hard to ensure it is in a strong long-term position to offer a blend of stability and flexibility.
Flexibility
Jersey’s funds industry, government and the regulator have been, and continue to be, intensively engaged on the AIFMD. With the AIFMD due to come into play in July, the overwhelming message is that Jersey intends to give the private equity community confidence by maintaining a ‘business as usual’ approach for funds business within the EU. It will be able to do this through private placement arrangements with individual EU countries, until at least 2018.
At the same time, Jersey is also committed to introducing the option of a fully AIFMD-compliant regime and obtaining an EU-wide passport by 2015 - as soon as is possible for non-EU ‘third countries’.
Meanwhile, as a non-EU jurisdiction, Jersey is able to continue to offer a completely separate regime that lies outside the scope of the Directive, for private equity fund managers who don’t want to access EU capital or who don’t operate in the EU.
In this way, Jersey will be able to continue operating its existing fund regime whilst at the same time offering an option that is fully compliant with the Directive, providing fund managers with the flexibility to market to investors both inside and outside the EU.
Committed and Compliant
The saga of the AIFMD has been a complicated one, and so too are the next steps involved in its implementation – particularly for ‘third-countries’ – so the focus for Jersey all along has been on giving private equity professionals the level of certainty they require.
Barring any unanticipated delays to its implementation, EU-Member States will need to be fully compliant with the Directive from July 2013. However, national private placement regimes in individual EU-member states can remain from that date – and until at least 2018 - for non-EU funds being marketed into the EU by non-EU managers, and this is the route that Jersey private equity funds can follow.
The continuation of private placement will require individual agreements between Jersey’s regulator and the regulator of each Member State, and Jersey’s regulator is already engaged with ESMA and Member State regulators to ensure such agreements can be in place in good time. With bilateral cooperation agreements already in place with the majority of key EU Member States, Jersey is confident that it will be able to sign all necessary agreements and be in the first tranche of jurisdictions to be authorised to utilise the private placement route.
Beyond private placement, Jersey is also well on track. EU-wide marketing passports, which will allow managers to market to investors across the EU, will become available to non-EU managers, such as those domiciled in Jersey, from 2015, provided they are fully authorised under AIFMD.
In terms of obtaining a passport and introducing a fully compliant AIFMD regime in 2015, Jersey is well-placed. The Directive is about regulating and authorising alternative fund managers, and this is something that Jersey already does, in line with IOSCO standards.
Keen to embrace AIFMD as soon as possible, Jersey intends to have a fully-compliant regime ready to go ahead of the 2015 date for non-EU countries, with Jersey’s regulator and government ready to progress any additional agreements required by ESMA.
Jersey already has information exchange agreements, either TIEAs or DTAs, in place with 13 Member States, including the UK, France, Germany, Sweden, Norway, the Netherlands and Ireland, with more expected to be ratified in the coming months. This number of agreements, combined with the excellent independent reports Jersey has received on its regulation, corporate governance and stance on anti-money laundering, means that Jersey is confident it will be able to satisfy all criteria needed to comply with AIFMD ahead of the 2015 deadline.
Between 2015 and 2018, meanwhile, non-EU private equity funds and fund managers will have the option to either use an EU-wide passport or continue marketing through the national private placement regimes, as they prefer.
Opportunities
The AIFMD could pose some opportunities for Jersey as an expert, specialist, safe, ‘no-change’ solution.
It is anticipated that maintaining an offshore option for non-European investors will make a great deal of sense for private equity fund managers. In the current climate, for instance, fund managers are thinking increasingly about sourcing capital from sophisticated Asian and Middle Eastern investors – for which an offshore solution will remain very attractive. Jersey is positioned superbly in this regard.
In addition, Jersey remains a top option for private equity managers to relocate to. The prevailing sentiment is that Jersey’s approach to the AIFMD, combined with its appropriate regulation, expert supporting infrastructure, geographical location and high quality of living, is proving attractive to managers – indeed a number have made the move in recent months.
Stability and flexibility are key considerations for private equity fund managers in the new alternative funds landscape and have been very much at the forefront of Jersey’s response to the AIFMD, as it looks to assert its position as a specialist centre for private equity business in the years ahead.
This article was published in Private Equity Manager's Fund Domiciles Guide 2012.
Whilst global market conditions remain challenging, Jersey’s funds sector has continued to demonstrate resilience.
By Geoff Cook, Chief Executive, Jersey Finance
With EU Member States currently preparing to formally implement the Alternative Investment Fund Managers Directive (AIFMD), Jersey, as a ‘third country’ non-EU jurisdiction, has also been working hard to ensure it can continue to offer hedge fund professionals a blend of stability and flexibility.
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As one of Europe’s leading centres for funds business, Jersey has been quick to set out a strong long-term position in supporting the hedge fund industry.
To do so is vital - Jersey continues to assert itself as a major player in the alternative funds space, with alternative fund classes accounting for around 70% of the total value of funds under administration in Jersey, and hedge funds alone making up a quarter of that total.
Committed
Overall, Jersey’s message is clear - it has the right frameworks in place to continue to provide hedge fund establishment, management and administration services on a ‘business as usual’ basis.
With Jersey’s funds industry, government and regulator continuing to be intensively engaged on the AIFMD, Jersey is committed to continuing to facilitate hedge funds business within the EU, and will be able to do this through national private placement regimes until at least 2018.
Jersey is also committed to introducing the option of a fully AIFMD-compliant regime and obtaining an EU-wide passport by 2015 - as soon as is possible for non-EU ‘third countries’.
Meanwhile, as a non-EU jurisdiction, Jersey is able to offer a choice by maintaining a separate regime that lies outside the scope of the AIFMD, for managers who don’t want to access EU capital or operate in the EU.
Combined, this range of options places an emphasis on providing managers with the flexibility to market to investors both inside and outside the EU.
Timescales
Whilst EU Member States will have to fully comply with the AIFMD from July 2013, national private placement regimes in individual EU Member States can remain in place for non-EU funds being marketed into the EU by non-EU managers until at least 2018.
For Jersey, these private placement regimes will require individual agreements between its regulator and the regulator of each Member State in which its funds are marketed. Jersey’s regulator is fully engaged with ESMA and Member State regulators on these agreements, to ensure they will be in place in good time.
Beyond private placement, Jersey is also well on track. Keen to fully embrace the AIFMD as soon as possible for non-EU countries, Jersey intends to have a fully compliant ‘passport’ regime ready to go by 2015.
Jersey already regulates and authorises alternative fund managers in accordance with IOSCO standards, and has a number of tax information exchange agreements in place, including with 13 Member States. With this in mind, Jersey is confident that it will be able to satisfy the criteria needed to comply with the AIFMD ahead of the 2015 deadline.
Between 2015 and 2018, non-EU funds and fund managers will have the option to benefit either from an EU-wide passport or to continue marketing through private placement regimes.
Opportunities
The AIFMD may actually present Jersey with some opportunities.
The route adopted by Jersey, for example, offers managers a choice - of an option that is fully AIFMD-compliant and a route that remains outside the EU. In the current climate, fund managers aren’t just focusing on Europe, they are adopting global strategies targeting, for instance, Asian and Middle Eastern investors. In such circumstances, a flexible offshore solution will remain attractive.
In addition, hedge fund managers are still showing significant interest in relocating to Jersey. Driven by high taxation in onshore locations, a prevailing sentiment that they are being unfairly targeted, and a desire for a high quality of living, managers consider the flexibility of Jersey’s approach to the Directive as another real attraction.
Far from being a burden, the Directive could actually pose some opportunities for Jersey as a safe, specialist, ‘no-change’ solution. Jersey recognises that stability and flexibility are key considerations for fund professionals in the new alternative funds landscape and has borne that very much in mind as it responds to the AIFMD.
This article was published in Hedge Funds Review.
With EU Member States currently preparing to formally implement the Alternative Investment Fund Managers Directive (AIFMD), Jersey, as a ‘third country’ non-EU jurisdiction, has also been working hard to ensure it can continue to offer hedge fund professionals a blend of stability and flexibility.
The Chief Minister's Department issues a press release on the latest developments regarding FATCA. Copy of the press release can be obtained by clicking on the link below.
The Chief Minister's Department issues a press release on the latest developments regarding FATCA.
By Nigel Strachan, Chairman, Jersey Funds Association
With the Alternative Investment Fund Managers Directive being formally adopted by EU Member States, alternative fund managers will be encouraged to know that Jersey, as a ‘third country’ non-EU jurisdiction, has been working hard to ensure it can continue to offer long-term stability and flexibility to the international alternative funds industry.
Whilst the Directive is intended principally to regulate alternative fund managers, it will also impact service providers, including administrators and depositories, as well as the ongoing transparency, reporting and marketing of alternative investment funds themselves. There’s no doubt that its reach is broad and significant for private equity and real estate funds that are domiciled in Europe, have an EU manager, or are marketed in the EU.
As one of Europe’s leading centres for alternative funds business, Jersey has been quick to acknowledge this and is on the front foot in working with the Directive to ensure it is in a strong long-term position.
This is vital for Jersey, which has become the jurisdiction of choice for a significant number of private equity and real estate, as well as venture capital, mezzanine, debt and hedge funds - the current value of alternative funds administered in Jersey stands at 70% (£138.4bn) of the total (£196.2bn).
Jersey’s Vision
While Jersey is in legal terms a ‘third country’ for the purposes of the EU single market, in practice its finance industry has a long history of providing financial services in the EU market, most notably with London. To put things in context, it’s worth remembering too that Jersey is as much a third country as any other non-EU country, such as the USA.
Overall, Jersey’s strategy in relation to the Directive is to make it clear that it has the legal, tax and regulatory framework in place to facilitate the continued functioning of fund management and administration services on a ‘business as usual’ basis.
At the same time, Jersey is also pursuing opportunities to improve market access arising from the Directive so that not only can managers have confidence in it as a stable environment for ongoing alternative funds business, but also in targeting growth too.
Jersey’s funds industry, government and the regulator have been, and continue to be, intensively engaged on the Directive, and the overwhelming message is that Jersey is committed to maintaining a business as usual approach for funds business within the EU through the national private placement until at least 2018.
Jersey is also committed to introducing the option of a fully AIFMD-compliant regime and obtaining an EU-wide passport by 2015 - as soon as is possible for non-EU ‘third countries’.
Meanwhile, as a non-EU jurisdiction, Jersey is able to continue to offer an element of flexibility by maintaining a completely separate regime that lies outside the scope of the Directive, for managers who don’t want to access EU capital or who don’t operate in the EU.
In this way, Jersey will be able to continue operating its existing, successful fund regime (designed to meet IOSCO standards) whilst at the same time offering an alternative regime that is fully compliant with the Directive, providing fund managers with the flexibility to market to investors both inside and outside the EU.
Private Placement and Passports
The timescales in relation to the next steps involved in the implementation of the Directive, particularly for third-countries such as Jersey, are complex.
EU-Member States will need to be fully compliant with the Directive as from July 2013. However, national private placement regimes in individual EU-member states can remain in place from that date, for non-EU funds being marketed into the EU by non-EU managers. That will be the case until at least 2018, without a requirement for non-EU managers to comply with the Directive in full.
The continuation of private placement regimes – the way that a number of Jersey funds are already actively marketed into the EU - will require, amongst other things, individual agreements between Jersey’s regulator and the regulator of each member state. ESMA are coordinating guidelines on these cooperation arrangements and Jersey has been heavily engaged in this process. Jersey’s regulator continues to engage with ESMA and member state regulators to ensure agreements can be in place in good time by July 2013.
Jersey currently has in place bilateral regulatory cooperation agreements with the majority of key EU Member States. The pre-existence of these agreements gives rise to a high level of confidence in Jersey's ability to sign the necessary co-operation agreements with the regulators of individual Member States.
Beyond private placement, Jersey is also well on track. Assuming the regulatory architecture necessary is created and approved by ESMA, EU-wide marketing passports, which will allow managers to market alternative funds to professional investors across the EU, will become available to non-EU managers from 2015, provided they satisfy specified criteria and are fully authorised under the directive.
So, whilst July 2013 is the date when EU managers and fund structures will require full compliance with all aspects of the Directive, Jersey, as a third country, won’t be able to - and won’t need to - obtain an EU-wide ‘passport’ before 2015.
It’s worth noting that even between 2015 and 2018, non-EU funds and fund managers will have the option to benefit either from an EU-wide passport or continue marketing through the national private placement regimes. ESMA are expected to provide guidance on whether or not to continue the national private placement route in 2018.
In terms of obtaining a passport, fully embracing the Directive and introducing a fully compliant AIFM Directive regime when it can in 2015, Jersey is also extremely well-placed. The AIFM Directive is about regulating and authorising alternative fund managers, and this is something that Jersey already does, in accordance with IOSCO standards.
Fully Compliant
Keen to fully embrace the Directive as soon as possible, Jersey intends to have a fully-compliant regime ready to go ahead of the 2015 date for non-EU countries, with the regulator and government ready to progress any additional agreements required by ESMA.
For instance, Jersey has agreements in place to exchange information on tax matters under the OECD Model Tax Convention with each Member State where alternative investment funds are to be marketed for passporting purposes from 2015. These include TIEAs or DTAs with 13 Member States, including the UK, France, Germany, Sweden, Norway, Finland, Denmark, The Netherlands and Ireland, whilst a number of other EU nations are expected to ratify TIEAs with Jersey in the coming months.
In addition, Jersey is able to comply with all required international reporting and transparency requirements, and leads the way in anti-money laundering, being more compliant with FATF recommendations than many larger onshore asset management jurisdictions.
With this substantial number of agreements in place and the excellent reports it has received on its regulation, oversight, corporate governance and stance regarding anti-money laundering, Jersey is confident that it will be able to satisfy the criteria needed to comply with the Directive ahead of the 2015 deadline.
Ahead of clear guidelines from ESMA, Jersey is preparing for every eventuality in terms of the agreements it will need to have in place or amendments it will need to make to existing regimes. In all cases, Jersey is confident it will be able to meet the requirements necessary.
For Jersey’s ongoing non-EU route, no changes are initially envisaged to Jersey’s existing fund products or structures.
For the EU AIFM Directive route, however, in order to satisfy the requirements of the Directive’s model for obtaining an EU-wide passport, some of Jersey’s licensing policies and codes of practice will be augmented in due course. Any changes to existing products are anticipated to be minimal and simple to implement.
Long-Term Growth
Whilst there has been some speculation that the Directive may prompt a migration of private equity and real estate fund business away from offshore centres to onshore centres, which are deemed to offer a greater degree of certainty where the Directive is concerned, this is not Jersey’s experience to date or expectation at all.
Although a handful of managers have publicly expressed a desire to use onshore EU structures in future, the vast majority of alternative asset advisors (71%) confirmed in a survey conducted by Jersey Finance that they would not replace non-EU managers and non-EU funds with onshore solutions.
The route adopted by Jersey actually allows managers choice: of a route that is fully compliant with the Directive, and a route that remains outside of the EU completely, giving them more flexibility and certainty than onshore centres could. Some managers may well decide that they need an onshore option but it is anticipated that they will maintain a parallel offshore one too for non-European investors – it makes sense to do so.
Moreover, in the current climate, fund managers aren’t just focusing on Europe, they are thinking increasingly about adopting global marketing strategies to source capital. For sophisticated Asian and Middle Eastern investors in alternative investment funds, for instance, offshore solutions will remain attractive.
Far from being a burden for Jersey, the Directive could actually pose some opportunities. For example, whilst EU jurisdictions will have to deal rapidly with implementation of the AIFM Directive and indeed a raft of other EU financial services regulation, Jersey will be able to carry on business as usual until at least 2015 through national private placement regimes. Jersey can offer certainty, a safe environment and a ‘no-change’ solution, affording private equity and real estate fund managers the opportunity to focus their efforts on long-term growth.
Jersey recognises that certainty, stability and flexibility are key concerns across the alternative investment fund sector. In gearing up for the implementation of the AIFM Directive, Jersey has been sure to be able to offer all these things.
For those managers wishing to remain outside of the EU, the management and administration of Jersey funds will continue without change.
For those wishing to access European markets, the national private placement regimes will effectively mean business as usual for Jersey funds.
At the same time, the new AIFM Directive ‘brand’ is likely to have real appeal to some fund managers and their investors. In constructing the option of an AIFM Directive-compliant model, Jersey will also allow those managers who are seeking to operate within the Directive and who value the simple tax neutrality, sterling currency and excellent service standards offered by Jersey, the means to combine those features.
This article was first published in the Private Equity Real Estate Fund Administration and Technology Guide 2012.
With the Alternative Investment Fund Managers Directive being formally adopted by EU Member States, alternative fund managers will be encouraged to know that Jersey, as a ‘third country’ non-EU jurisdiction, has been working hard to ensure it can continue to offer long-term stability.
Jersey has secured its second international award as the top offshore jurisdiction in less than a month.
Jersey received the accolade of ‘Best Offshore Centre’ in the annual investment management awards organised by Global Investor/ISF, one of the flagship titles published by Euromoney Institutional Investor plc, a title read by the global asset management and securities finance community.
This success follows closely behind Jersey winning the ‘Best International Finance Centre’ at the International Fund and Product Awards 2012 organised by Incisive Media.
The Global Investor/ISF award was presented to David Vieira, head of marketing at Jersey Finance Limited, at a gala dinner awards ceremony in London hosted by Anthony Hilton, city editor of the Evening Standard, who was also a member of the eight-strong independent judging panel which also included magazine editor Alastair O Dell.
Alastair O’Dell said:
“These awards are prized by the industry because they are decided by a truly independent panel. Each and every winner is deserving of their award.”
Jersey was on a short list with Bermuda and Ireland. Factors taken into consideration included the legislative enhancements during 2011, the introduction of the Private Placement regime, the arrival of up to 18 new finance houses in Jersey, many of them hedge funds and the issuing of two new banking licences, the ongoing signing of tax information and other agreements with authorities abroad and Jersey’s consistent number one ranking in the Global Finance Centres Index.
Geoff Cook, Chief Executive, Jersey Finance, commented:
“While we are working in tough economic times, where all jurisdictions are facing much greater scrutiny and increasing swathes of regulation which together bring their own set of challenges, it is encouraging that Jersey continues to receive recognition for the quality of the jurisdiction and its international offering from respected publishing groups. Most importantly, we are being recognised for the fact that we continue to evolve and develop to meet those global challenges in order to secure new business for the jurisdiction.”
Jersey has secured its second international award as the top offshore jurisdiction in less than a month.
For the third consecutive year, Jersey has been named ‘Best International Finance Centre’ at the 13th International Fund and Product Awards 2012, organised by media group Incisive Media.
The judging panel, consisting of independent industry practitioners and experts, took into consideration a number of criteria, including jurisdictions’ responses to the evolving regulatory environment and evidence of innovation and flexibility in developing complex international financial solutions. There were over 50 entries to this year’s awards from a wide range of companies in the offshore sector.
Commenting on this year’s awards, Deborah Benn of Incisive Media, chair of the judging panel said:
“There is little doubt that the past 12 months has possibly been the toughest year yet for the offshore industry. Not only has the ongoing backdrop of difficult economic conditions taken its toll, but higher than normal regulatory pressures have been evident this year. Yet despite this, entries have displayed a refreshing determination to keep up high standards of services which has impressed the judges. In particular, this year’s winners and highly commended entries have really shone.”
The judging panel added:
“Jersey’s entry highlights the effectiveness of a close working partnership with regulators and practitioners alike in terms of ensuring that initiatives introduced have the best chance of success. In particular, the judges felt that Jersey conducts business in an open and transparent manner in line with its reputation as a leading offshore jurisdiction. The introduction of structures and enabling legislation is particularly well thought through and on trend in terms of market relevance. Judges applauded Jersey’s efforts to grow its appeal in a wide range of markets, including permanent representation, which shows a clear commitment to raising awareness of what it has to offer.”
Geoff Cook commented:
"Jersey further consolidated its growing reputation as a leading international finance centre during 2011 and this award recognises its finance industry’s continued efforts to offer sophisticated and innovative funds and investment solutions in an increasingly competitive marketplace.
“Jersey remains committed to evolving its laws and regulations to meet international investor demand and satisfy the raft of regulation being introduced over the coming years, and will continue its proactive approach in ensuring it maintains its position at the forefront of international financial services. Jersey Finance is delighted to accept this award on behalf of the finance industry.”
For the third consecutive year, Jersey has been named ‘Best International Finance Centre’ at the 13th International Fund and Product Awards 2012, organised by media group Incisive Media.
The latest figures tracing the performance of Jersey’s finance industry reveal particularly strong growth in its funds sector during the first quarter of 2012, with a 3.5% increase in the net asset value of funds under administration and a total of 1,412 funds registered, the highest figure since 2009.
In further good news for the funds sector, the total number of unregulated funds, geared towards sophisticated, professional and institutional investors, also increased by an impressive 8.5% whilst the number of regulated funds grew by 1.4%.
The statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31st March 2012. Headline figures across all sectors of the industry include:
Geoff Cook commented:
“There is no doubt that 2012 will be a decisive year. Market participants are preparing for the worst with the Eurozone crisis taking on worrying proportions and economic uncertainty continuing to have a negative impact on growth.
“The funds sector performed well and saw a 3.5% increase in the net asset value of funds under administration, the total number of regulated funds grew by 1.4% and the total number of unregulated funds increased by 8.4%. Regulated fund stocks at 1,412 registered the best performance since 2009. The investment management sector saw a 1% increase in the value of assets under investment management during the first quarter of 2012 and 646 new companies were formed.
“In these uncertain times there is a strong demand from investors for high quality safe harbours like Jersey and we are well placed to benefit from this demand. We believe that Jersey’s long-term perspective, stability and continued drive for innovation are extremely attractive to investors worldwide.’’
Nigel Strachan added:
“That the number of funds in Jersey is at its highest level since early 2009 is clearly good news, whilst it is particularly pleasing that Jersey continues to assert its strengths as a specialist centre for alternative funds. As well as the number of unregulated funds continuing to grow strongly, the value of specialist funds, including private equity, real estate and hedge, grew by over 4% over the quarter to represent 70% of the total value of funds under administration. As we gear up to embrace the AIFM Directive, that fund professionals and investors are showing such confidence in Jersey is hugely encouraging.”
The latest figures tracing the performance of Jersey’s finance industry reveal particularly strong growth in its funds sector during the first quarter of 2012.
An audience of almost 300 fund professionals heard that Jersey is well placed to meet stringent international regulations and grow its funds business at a major conference held in London last week, organised by Jersey Finance.
Two-thirds of delegates attending Jersey Finance’s London Funds Conference, held at the British Museum last week (18 April), were UK-based, and they heard from a heavyweight line-up of finance and legal professionals who considered the future of the international funds industry and explored how market trends might impact International Finance Centres.
Two keynote presentations opened and closed the event, with David Smith, Economics Editor at The Sunday Times, offering his insights into the economic crisis and Jersey’s Treasury and Resources Minister Senator Philip Ozouf underscoring the States of Jersey’s commitment to supporting the future growth of Jersey’s funds industry. Two panel sessions also explored the key issues and opportunities facing the industry, including the Alternative Investment Fund Managers Directive. The event was moderated by Anthony Hilton, City Editor of the Evening Standard.
Geoff Cook, commented:
“That such a significant proportion of those attending our flagship London funds conference were based in the UK is real evidence of just how attractive Jersey’s funds offering continues to be to the London market. The feedback we have had about the event, particularly from the London-based funds lawyers, managers and advisors, has been extremely positive. They were incredibly impressed with what independent industry experts had to say about Jersey’s funds industry.
“Those attending were particularly pleased to receive an update on Jersey’s commitment to working with AIFMD, learn more about Jersey’s recently launched Private Placement Fund regime, and hear that fund managers are increasingly considering relocating to Jersey. Having Treasury and Resources Minister Senator Philip Ozouf offer his governmental level support to the funds industry was also extremely well received by delegates.”
Nigel Strachan, Chairman of the Jersey Funds Association and who participated in the second panel discussion at the conference, added:
“Overall, the message taken home by delegates was that the outlook for Jersey’s funds industry is positive. With competition increasing significantly in the international funds arena, this event served Jersey well in terms of provoking debate and opening up new channels of discussion with key intermediaries in London, which remains a key market for Jersey. It is vital that we maintain momentum and continue with our efforts to promote a key pillar of our finance industry through events like this."
An audience of almost 300 fund professionals heard that Jersey is well placed to meet stringent international regulations and grow its funds business at a major conference held in London last week, organised by Jersey Finance.
Jersey’s funds industry can be positive about the year ahead and has the right ingredients to maintain its position as a leading European funds centre, according to the head of the association that represents the funds industry in Jersey.
Speaking to an audience of 450 funds professionals at the Jersey Funds Association (JFA) Annual Dinner, which took place at the Hotel de France on Friday 9th March, Nigel Strachan, Chairman of the JFA, said that the industry was working hard to maintain high levels of investor confidence. He said:
“The most recent figures show that, at the end of 2011, Jersey’s funds sector had grown year on year, with the alternative asset classes in particular performing well. Jersey has committed to satisfying fully the criteria for the AIFM Directive whilst also retaining a flexible non-EU regime, and is successfully positioning itself as a specialist centre for institutional, sophisticated and professional investment funds business. This is all very positive.”
He also highlighted the recent launch of the Private Placement Fund regime as an example of Jersey’s commitment to innovation in a competitive market, and referred to the sustained interest being shown by fund managers considering relocating to Jersey.
Entertainment at the dinner was provided by Perrier and Sony award-winning comedian Milton Jones, who regularly appears on national television and radio, whilst musical entertainment was provided by Joe Stilgoe, a favourite at the UK’s top jazz clubs. A raffle held on the night also raised £5,000 for Multiple Sclerosis Society of Jersey.
The lead sponsors of the event were private equity fund services firm Ipes and financial services firm JP Morgan, with a pre-dinner champagne reception sponsored by BNP Securities Services.
Nigel Strachan added:
“Jersey continues to be recognised as a robust, well regulated jurisdiction with a strong expert workforce and, with relationships with key business referrers in London remaining strong, I believe we can maintain our momentum and look forward to a successful year ahead.”
Photos from the dinner are available to view via the JFA website www.jerseyfunds.org.
Jersey’s funds industry can be positive about the year ahead and has the right ingredients to maintain its position as a leading European funds centre, according to the head of the association that represents the funds industry in Jersey.
A heavyweight line up of finance and legal professionals will consider the future of the funds industry with a particular focus on how the markets will impact International Finance Centres at the annual Funds Conference hosted and organised by Jersey Finance in London next month.
Two panel sessions will explore some of the key issues and opportunities facing the industry. The first will explore the Alternative Investment Fund Managers Directive (AIFMD) Level 2 implementation methods and its implications on the European and offshore alternative funds industries.
Later in the programme a fresh panel will debate the current funds marketplace from an International Finance Centre perspective, discussing the key drivers for funds businesses and identifying trends in the split of real estate, private equity and hedge funds as well as the opportunities for fund managers and promoters looking to use Jersey. These panels will be moderated by Anthony Hilton, City Editor of the Evening Standard.
Two keynote presentations will open and close the event with David Smith, Economics Editor at The Sunday Times, addressing the audience with his insight into how western economies can rebalance in light of the economic crisis and steady rise of the BRIC economies. Jersey’s Treasury and Resources Minister Senator Philip Ozouf will close the conference by underscoring the States of Jersey’s commitment to safeguarding and building the future of the island’s funds industry.
Geoff Cook, who will open the event, commented:
“Against a backdrop of market volatility, economic uncertainty and regulatory burden, this year’s funds conference brings together an exceptional group of industry experts to explore these challenges and look at the opportunities ahead. Jersey has had a positive start to 2012 with the introduction of the Private Placement Fund Regime, the value of which is already being realised by fund managers. Issues such as AIFMD will continue to present regulatory challenges for jurisdictions like Jersey, however it will also offer opportunities and I look forward to generating thought-provoking debate on these important issues.”
Nigel Strachan added:
“Having reported a 2.5% increase in the net asset value of funds under administration and a 25% increase in the number of unregulated funds during 2011, Jersey’s funds industry continues to perform well, strengthening its offering for sophisticated, professional and institutional investors and focusing on providing high levels of certainty. Maintaining momentum will be vital this year and this conference will undoubtedly provide a fascinating insight into what is on the horizon for our industry.”
Jersey Finance’s 7th annual Funds Conference takes place on April 18th 2012 at the British Museum starting at 12.30pm and closing at 7pm following a drinks reception. To book a place or to view the full list of speakers and the complete programme please visit http://www.jerseyfinance.je/Events/Jersey-Finance-Events/Jersey-Finance-Annual-London-Funds-Conference.
A heavyweight line up of finance and legal professionals will consider the future of the funds industry with a particular focus on how the markets will impact International Finance Centres at the annual Funds Conference hosted and organised by Jersey Finance in London next month.
Jersey Finance has announced that its Annual London Funds Conference will take place this year on Wednesday 18th April at the British Museum.
Further details about the event are due to be available shortly at www.jerseyfinance.je.
Jersey Finance has announced that its Annual London Funds Conference will take place this year on Wednesday 18th April at the British Museum.
Jersey has extended its funds regime through the introduction of the Private Placement Fund to widen the choice available to investors.
Private Placement Funds are closed ended funds available to a limited number of sophisticated institutional or professional investors. Similar in scope to the existing COBO (Control of Borrowing Order) private funds, the new fund offering is designed for ‘fast track’ approval, usually within three business days.
Private Placement Funds will sit within the COBO framework and will complement the existing Expert Fund regime which also provides a streamlined approval process and has helped position Jersey as a leading European centre for alternative funds business.
Geoff Cook commented:
“Even in these testing economic conditions, Jersey has seen increasing levels of business in the alternative funds sector during 2011 and our latest figures show 10.5% year on year growth in the net asset value of funds being administered in Jersey.
“With Jersey’s funds industry already well positioned to secure alternative funds business and with signs of further growth evident, it is an appropriate time to offer an even wider choice of sophisticated fund vehicle to meet international demand. The introduction of the Private Placement Fund scheme demonstrates that Jersey is determined to not only remain competitive in the funds arena but will also continue to provide innovative solutions within its range of fund services.”
He added: “Industry representatives led by Mike Lombardi at Ogier and Ben Robins at Mourant Ozannes have consulted closely to help fashion this new fund regime, taking into account the evolving needs of international investors and the changing nature of global regulation.”
Key features are:
Jersey will continue to operate its COBO regime also for those specialist private funds which do not fall within the scope of the new Private Placement offer. The new Private Placement Fund is effective and available to investors from Thursday, January 26.
Nigel Strachan added:
“Jersey’s funds industry, together with the Jersey Financial Services Commission, has been working really hard to create this new Private Placement funds regime, so it’s excellent news that it can now be unveiled. Specifically geared towards limited numbers of professional or sophisticated investors, this flexible regime will offer, provided the fund satisfies certain conditions, a fast track, streamlined authorisation process that we believe will add to the strength and range of fund products in Jersey and provide speed and certainty to launch for investors – essential in today’s market, where arrangers need to react quickly to new market opportunities. With its appropriate regulatory oversight, we expect the regime to be attractive across the alternative asset classes, including real estate, private equity, mezzanine, cleantech and emerging market funds.”
Jersey has extended its funds regime through the introduction of the Private Placement Fund to widen the choice available to investors.
Funds professionals in Jersey will be entertained by a Perrier and Sony award-winning comedian at the annual Jersey Funds Association (JFA) Dinner this year.
Milton Jones, who regularly features on Radio 4, has appeared on Michael McIntyre’s Comedy Roadshow and is a writer on the BBC series Not Going Out, will be the guest speaker at the dinner, which takes place on 9th March at the Hotel de France.
The lead sponsors of the event are private equity fund services firm Ipes and financial services firm JP Morgan. The evening will begin at 6.45pm with a champagne reception, sponsored by BNP Securities Services. Musical entertainment will be provided before and after the dinner by Joe Stilgoe, whose singing, piano playing and sense of humour have made him a favourite at the UK’s top jazz clubs, where he regularly plays.
Nigel Strachan, Chairman of the Jersey Funds Association, said:
“Whilst the past year has been challenging for the funds industry globally, funds professionals in Jersey have worked tirelessly to ensure that we have been able to maintain our position as a leading European funds centre. The annual flagship JFA dinner is an excellent way to recognise the work that has been put in over the past twelve months and to look forward to what I believe can be a successful year ahead.”
Funds professionals in Jersey will be entertained by a Perrier and Sony award-winning comedian at the annual Jersey Funds Association (JFA) Dinner this year.
The Chairman of the Jersey Funds Association, Nigel Strachan, has written to all members providing them with an update on the Funds Industry. To view this letter, please click on the link below.
JFA members update January 2012 Final.pdf
The Chairman of the Jersey Funds Association, Nigel Strachan, has written to all members providing them with an update on the Funds Industry. To view this letter, please click on the link below.
