By Geoff Cook, Chief Executive Officer, Jersey Finance

The long awaited EU Alternative Investment Fund Managers Directive (AIFMD) – perhaps the most fundamental international regulation to ever impact the funds industry – was, after years of build-up and months of analysing the finer points of its implementation, finally introduced this summer.

While EU countries are looking to bring the AIFMD into national law at their different paces, those alternative fund managers, administrators and service providers who have some sort of interest in or contact with the European market, are still trying to get to grips with exactly what the detail of the AIFMD means to them, and how they need to act to continue to facilitate alternative funds business.

There are three key ingredients the funds community are looking for currently: certainty about being able to raise capital in Europe; confidence in being able to effectively and appropriately service and support their funds; and flexibility in how funds can be managed should they be targeted at non-European growth markets.

Of course, the AIFMD has an impact on the role of those International Finance Centres (IFCs) that have earned reputations as specialist funds centres. As far as Jersey is concerned, the message is unequivocally that, thanks to the significant amount of hard work and preparation that has gone into gearing up for the introduction of AIFMD, it is very much business as usual for fund managers using the jurisdiction.

In fact, due to the distinct position it is in, in relation to the EU and the rest of the world, there is a strong argument that Jersey is even better placed now as a result of the regulation.

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Substance

As a non-EU ‘third country’ for the purposes of the AIFMD but a well-established jurisdiction at the centre of European funds business, the feeling is that the AIFMD will actually enhance Jersey’s appeal as a centre for structuring and servicing alternative funds – including private equity, real estate and hedge funds - in the long-term.

This is important for Jersey, given its persistent strength in the alternative investment funds market. Jersey has continued to demonstrate a significant degree of resilience across its funds sector, with figures for the second quarter of 2013 showing that the value of assets under administration in Jersey remains above the £200bn barrier for the second consecutive quarter, to stand at £201.3bn. Alternative asset classes continue to account for around 70% of that total, with some of the largest European private equity funds ever launched having been formed in Jersey in recent months.

First and foremost, Jersey is focused on offering the alternative funds community a long-term, stable environment. Having signed 27 bilateral ‘AIFMD’ cooperation agreements with EEA countries, including the UK, Germany and France, Jersey’s regulator (the Jersey Financial Services Commission) is already granting licenses for fund managers, enabling them to continue to access those EU markets through private placement arrangements.

An interactive online tool designed to help explain and clarify the status of Jersey’s AIFMD cooperation agreements with European countries, including details of private placement arrangements and transitional provisions, has been launched at www.jerseyfinance.je/aifmd-map.

In addition, new regulations have been introduced to mirror EU requirements and allow for the creation of an ‘opt-in regime’ for managers wishing to comply fully with AIFMD requirements in marketing to European investors. This essentially means that Jersey has not only achieved a 'private placement' regime under the AIFMD, but has also already implemented, ahead of time, the necessary mechanics to support an EU-wide AIFMD marketing passport, which is anticipated to become available for non-EU fund managers in 2015. This is not something that can be said for other IFC jurisdictions.

As far as the issue of ‘substance’ is concerned, in Jersey, there is already a regulatory requirement for Jersey entities to demonstrate substance, and so-called ‘letterbox arrangements’ that might be found elsewhere are certainly not the model in Jersey regulated fund structures.

In fact, Jersey’s deep knowledge of the alternative fund sector, including its experience in asset servicing, its tax, accounting and filing capabilities, and its governance expertise, mean that fund managers should take confidence in Jersey having all the ingredients to more than satisfy the AIFMD’s criteria for management substance. This is backed-up further by the immediate availability of a fully compliant depositary regime and infrastructure of institutional and independent depositary service providers where managers opt in to full AIFMD compliance.

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Global

Meanwhile, in the current climate, managers are understandably adopting global strategies and raising capital in growth markets around the world where wealth is being created and global investment opportunities are sought after.

With this in mind, using a non-EU but European time-zone jurisdiction such as Jersey, that is experienced and has expertise in handling non-European alternative funds business will be attractive – particularly given that it needn’t be touched by AIFMD regulation at all.

As a non-EU jurisdiction, Jersey offers a completely separate funds regime that lies outside the scope of the AIFMD, meaning that managers who don’t want to access EU capital can benefit from an element of flexibility and market their funds to the rest of the world - just as they do at the moment, using Jersey’s familiar and broad range of fund structures.

This flexibility puts Jersey in something of a unique position. As well as offering a route that offers the same controls under AIFMD that would be offered by an EU Member State, at the same time Jersey offers managers the ability to market their funds outside Europe without the need to consider the impact of the AIFMD at all.

Fund promoters can establish all their management entities in Jersey and, from one location, meet EU requirements. At the same time, they can serve the rest of the world in a non-AIFMD compliant environment - with potentially lower costs. Offering both will not be available to EU Member States or to all IFCs.

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Future

Thanks to its approach to the AIFMD, Jersey’s position as a centre for on-going administration and service support for private equity, real estate and hedge funds is positive. Thanks to its flexible approach, wherever the fund’s assets or investors are, Jersey provides a good option, offering the expertise, capability and experience to administer the structure.

Parallel ‘offshore-onshore’ structures may well become more common, for fund managers who need to satisfy a specific investor demand for keeping a fund onshore – albeit with the potential additional compliance costs that could bring. But this is not anticipated to replace funds ‘offshore’, which in Jersey’s case will continue to offer a good value, flexible, robust option to cater for all aspects of alternative fund business.

In fact, as AIFMD beds down, it is anticipated that Jersey will prove increasingly attractive for managers with an international focus on both non-European and pan-European funds. Jersey has risen to the challenge presented by AIFMD and, by offering a regime that offers a blend of certainty and flexibility, taken the opportunity to broaden its scope and appeal as a specialist alternative funds centre.

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This article was first published in FTSE Global Markets, Channel Islands report, October/November 2013.

Jersey has been named ‘Best Fund Service Centre’ in the inaugural awards of the leading investment management publication Investment Week.

Jersey, which was short-listed alongside Luxembourg and Dublin, was announced the winner at Investment Week’s two-day Fund Management summit in London last week.

Gary Hales, Head of Business Development, Europe and Russia, Jersey Finance, accepted the award at the ceremony which was attended by many of London’s leading investment professionals including many of the UK’s major fund service providers.

Commenting on Jersey winning the award, Deborah Benn, chair of the judging panel, said:

"The panel felt Jersey displayed an appetite to innovate and accommodate new fund markets, while at the same time keeping regulatory standards extremely high. Forward thinking has paid off with excellent growth in funds under administration and Jersey's continued ability to attract top quality financial institutions.’

Geoff Cook, CEO, Jersey Finance Limited, added:

‘A further accolade for Jersey this year is naturally welcome and it is particularly encouraging for the funds industry that it secured this award from a leading and long established investment publication familiar to many in the industry, and that we were named the top jurisdiction from a hugely competitive field which included leading EU jurisdictions.’

Jersey has maintained its top ranking amongst offshore jurisdictions in the latest Global Financial Centres Index (GFCI) and is again the only offshore location to feature in the top 30 International Finance Centres (IFCs) around the world.

Jersey continues to be ranked at 28 in the Index which is led by London and New York, retaining the same ranking it had in the previous edition of the Index, ahead of close competitors Guernsey (ranked 36), Cayman Islands (39) and the Isle of Man (41). The Index, published every six months and launched in 2007, was designed as a barometer to track movements in the competitiveness of financial centres around the world.

It reported that overall the offshore sector had performed better in the Index than it did in the previous edition published in March and in respect of Jersey, it stated that other offshore centres along with North America and the Middle East/Africa region rated Jersey more favourably than they had in the previous Index.

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Geoff Cook commented:

“It is encouraging that Jersey continues to be ranked in the top 30 staying ahead of its competitors. A graph published in the Index, illustrating the performance of the offshore jurisdictions, shows clearly how Jersey has consistently maintained its leading position during the six years since the Index was launched. While there have undoubtedly been challenges for many of the niche IFCs including the offshore jurisdictions since the financial crisis of 2007, Jersey’s consistency continues to be evident, while there is also a welcome improvement in our rating from some of the key locations where we are seeking to secure new business.’

Geoff Cook was invited by the GFCI publishers to contribute a Foreword to the report, the first time an offshore jurisdiction representative has been asked to do so. In his Foreword, he wrote that ‘looking to the future, and in common with other leading jurisdictions, Jersey is now fully engaged in enhancing its presence and developing business in key international markets including China, India, the Gulf, Russia and the African Continent. To succeed in these growth activities, we understand that reputation is a key ingredient in attracting new business and believe that the best reputation will stem from stability, experience, quality, innovation, an adherence to global standards and respect for client privacy, all features that Jersey is proud to embrace.’

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By Geoff Cook, CEO, Jersey Finance

After years of build-up and months of analysis, the long awaited EU Alternative Investment Fund Managers Directive (AIFMD) has now finally been introduced.

With EU countries bringing the AIFMD into national law at varying paces, hedge fund managers are still establishing exactly what the detail of the AIFMD means to them. From a jurisdictional point of view, they clearly require three things - certainty about being able to market into Europe; flexibility in how their funds are managed should they wish to target non-European markets; and confidence in the ability to effectively and appropriately service their funds.

As far as Jersey is concerned, thanks to the significant amount of hard work that has gone into gearing up for AIFMD, it is very much business as usual for hedge fund managers. In fact, as the dust settles on the introduction of AIFMD, it could be argued that Jersey, as a non-EU country but immersed in the European funds industry, is even better placed now as a result of the regulation.

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Substance

First and foremost, Jersey is focused on offering hedge fund managers a long-term stable environment. Having signed 27 bilateral cooperation agreements with EEA countries including the UK and Germany, Jersey’s regulator (the Jersey Financial Services Commission) is already granting licenses for fund managers enabling them to continue to access EU markets through private placement arrangements.

In addition, new regulations introduced in Jersey in April this year to mirror EU requirements also allow for the creation of an ‘opt-in regime’ for managers wishing to comply fully with AIFMD requirements in marketing to European investors. This essentially means that Jersey has already implemented, ahead of time, the necessary mechanics in order to be able to support an EU-wide AIFMD marketing passport, anticipated to become available for non-EU fund managers in 2015. This is not something that can be said for other IFCs.

The issue of ‘substance’ under AIFMD has also become a point of debate for hedge fund managers. In Jersey, there is already a regulatory requirement for Jersey entities to demonstrate substance, and so-called letterbox arrangements that might be found elsewhere are certainly not part of the model in Jersey regulated fund structures.

In fact, Jersey’s knowledge of the alternative asset sector, including its experience in asset servicing, tax and accounting, means that hedge fund managers should take confidence in Jersey having all the ingredients to more than satisfy the AIFMD’s criteria for management substance.

This is backed-up further by the immediate availability of a fully compliant depositary regime and infrastructure of institutional and independent depositary service providers.

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Global

Meanwhile, hedge fund managers are not only targeting the EU investor market but are adopting global strategies targeting growth markets around the world. With this in mind, using a non-EU but European time-zone jurisdiction that has expertise in handling non-European hedge fund business, such as Jersey, is attractive.

By offering a completely separate funds regime that lies outside the scope of the AIFMD, Jersey is providing managers with a welcome degree of flexibility, enabling those who don’t want to access EU capital to market their funds to the rest of the world using Jersey’s familiar range of structures.

We are already seeing this flexibility putting Jersey in something of a unique position, with promoters establishing management entities in Jersey and from one location meeting all EU requirements while also serving the rest of the world in a non-AIFMD compliant environment. Offering both is not available in EU Member States or in all IFCs.

With AIFMD now very much part of the hedge fund landscape, initial indications are that Jersey is maintaining favour with hedge fund managers thanks to a fund regime that offers both flexibility and certainty.

This article was first published in HFMWeek on 10th September 2013.

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Jersey’s pro-active and flexible approach to the adoption of new international regulation will ensure its funds industry can look forward to a positive future, according to Ben Robins, the new Chairman of the Jersey Funds Association (JFA).

Elected into the position of Chairman at the recent AGM (19 July) of the trade association that represents Jersey’s funds industry, Ben is joined by Tim Morgan, who becomes Vice Chairman.

A partner and head of the funds practice area at Mourant Ozannes, Ben has extensive experience in investment funds, offshore capital markets and structured finance. Having qualified as an English solicitor with Speechly Bircham in London, he returned to Jersey to join Mourant Ozannes (then Mourant du Feu & Jeune) in 1997. He became a partner at the firm in 2002 and has headed its Jersey and global funds practice areas since 2008.

Ben has been a frequent participant in local industry working groups looking at key regulatory changes, including most recently the implementation of the EU Alternative Investment Manager's Directive (AIFMD). Following his election to the role of JFA Chairman, he said:

“With AIFMD coming into force last month, it is certainly an engaging time to take over as Chairman of the Jersey Funds Association. With the pro-active approach Jersey has taken, I am convinced that we are in an extremely strong position to continue to act as a specialist centre for alternative funds business, both in and outside of Europe. It is particularly welcome news that, having now signed 27 bilateral cooperation agreements with EU Members States, including the UK, Germany and France, the Jersey Financial Services Commission is now ready to accepting applications from local alternative fund managers enabling them to continue to access EU markets.”

Tim, who has been an active member of the JFA’s committee for several years and is a Partner at law firm Ogier and a specialist in investment funds, corporate, finance and restructuring work, added:

“Jersey’s funds industry has continued to perform well in 2013. The total net asset value of funds under administration in Jersey grew in the first quarter of the year by 6.5% to surpass the £200bn barrier, while the alternative asset classes still represent over 70% of Jersey’s funds business. With its new-look and highly experienced committee now in place, the JFA will continue to look carefully at the issues facing the industry and, by working closely with Jersey Finance and the regulator, strive to maintain Jersey’s position as a leading specialist European funds centre.”

Ben and Tim replace former Chairman Nigel Strachan and Vice Chair Edward Devenport, who have been at the helm of the JFA over the last three years and were thanked at the AGM for their hard work on behalf of Jersey’s funds industry during a busy and challenging period.

An active trade association representing companies with Jersey offices operating in the funds sector, the JFA has over 70 members, including firms spanning from niche independent Jersey-owned companies to global leaders.

Jersey Finance has welcomed the announcement from the Jersey Financial Services Commission (JFSC) that 25 bi-lateral agreements have been signed in respect of the Alternative Investment Fund Managers Directive (AIFMD), another key step in meeting the requirements of the Directive.

Jersey’s strategy, which is to offer flexibility within its funds regime to allow continued access to European markets, while also providing options for the rest of the world, remains on track.   It is the intention of the Jersey funds industry to satisfy the criteria to comply with the AIFMD and remain attractive both for ongoing ‘business as usual’ activity with Europe and also the increasing volume of business targeting markets outside the Eurozone.

The JFSC announced last Friday (July 12) that 25 AIFMD bilateral cooperation agreements have been signed with EU/EEA Member State supervisory authorities and that they are in active dialogue to conclude and agree the last few remaining agreements.

Geoff Cook, CEO, Jersey Finance, commented:

‘This is further positive news for the funds industry which has been experiencing consistent growth in 2013 to date.  The total net asset value of funds under administration in Jersey surpassed the £200bn barrier for the first time since March 2009 earlier this year and in the first quarter of 2013 there was a 6.5% increase in the total value. The Commission’s announcement that it has signed up to these agreements is encouraging and can only add to the momentum of the year to date.’

In May, the European Securities and Markets Authority (ESMA) approved a cooperation agreement with Jersey to ensure it can continue to deliver alternative investment funds business into Europe after the introduction of the EU Alternative Investment Fund Managers Directive (AIFMD) which is scheduled to come into effect on July 22.

From that date, access to EU markets for Jersey will be through private placement arrangements with individual EU countries until at least 2018. In order to achieve this, new regulations were introduced in Jersey in April this year, mirroring EU requirements and allowing for the creation of an opt-in regime for managers wishing to market to European investors. The next step is the individual agreements between Jersey’s regulator and the regulators of member states and Friday’s announcement was an update on the agreements signed to date.

Jersey doesn’t appear to be sweating on EU regulations that ring-fence outsiders from accessing EU private equity investors. Jersey Funds Association head Nigel Strachan tells Nicholas Donato the offshore financial center’s confidence stems from offering GPs a menu of oversight options.

Situated just off the coast of France on the edge of the English Channel is Jersey, the largest of the Channel Islands and whose sophisticated and comprehensive infrastructure of laws has been attracting fund managers from Paris, London, Frankfurt and other EU financial hubs to its nearby shores for some years.

Jersey began building its reputation as a fund domicile in the late 1980s by offering a regulatory regime more in line with industry needs.

“Jersey was offering a limited partnership that placed no cap on the number of limited partners at a time when the UK partnership structure was limited to 20 investors,” says in an interview with PE Manager Nigel Strachan, chairman of the Jersey Funds Association (JFA), the association for the island’s funds industry.

London would eventually lift its LP cap to remain competitive, but Jersey’s flexible approach towards fund registration and supervision preserved its popularity with private equity managers.

Enhancing its status as a fund domicile was the need for GPs to find a jurisdiction that offered investors from all around the world “a tax neutral platform”, says Strachan. Firms including CVC Capital Partners, Nordic Capital and Axa have all domiciled funds on the island. As of last year, the net asset value of funds under administration in Jersey stood at roughly £200 billion (€235 billion; $308 billion), with ‘specialist funds’ like hedge, real estate and private equity representing about 70 percent of the overall total, according to JFA statistics.

But over the past three years fund managers have been mulling another major consideration when selecting their next fund’s domicile. The Alternative Investment Fund Managers directive, due to take effect 22 July, will subject EU fund managers to a new era of oversight and regulation. The question for many has been whether a fund setup offshore would have a difficult time entering the market as a ’third country’. For Jersey, the concern was losing business from GPs that predominantly fundraise in Europe but domicile their funds offshore.

“Thanks to the flexible and distinct way Jersey has approached the AIFM directive, however, private equity fund managers using Jersey to domicile their funds will actually be presented with a number of opportunities as a result of the new regulation,” says Strachan when asked about this concern.

RESPONSE TO AIFM

So how did Jersey turn a potential shutout from Europe into an opportunity? Jersey’s response to the AIFM directive has been to create a multitier regulatory framework that accommodates both fund managers subject to EU regulations and those who want to continue “business as usual”, Strachan explains.

“In order to achieve this, new regulations were introduced in Jersey in April this year, mirroring EU requirements and allowing for the creation of an opt-in regime for managers wishing to market to European investors.”

To satisfy the directive’s requirements, Jersey recently had a cooperation agreement approved with EU market regulator the European Securities and Markets Authority (ESMA). The agreement enables fund managers using Jersey to continue to market into Europe through private placement rules until at least 2018 – the time when EU sovereigns may need to scrap their non-AIFM approved marketing routes.

The cooperation agreement, approved on 22 May, will give both EU and non-EU regulators permission to supervise fund managers that operate on a cross-border basis both within and outside the EU.

Individual cooperation agreements must still be signed with national regulators from each EU country.

“The difficulty here is that we don’t know what each EU member state approach will be – so France is different to Germany, but we certainly know for the UK that the private placement option is open come this July,” says Strachan.

Nonetheless Strachan believes that Jersey’s agreement with central EU authorities will help facilitate conversations with national regulators. “The member states' regulators would have been unlikely to enter into the agreements without ESMA approval, so the focus can now shift to them to see if they have any further points they want to raise.”

And of course fund managers who need not, nor wish to, comply with the directive can continue to draw on Jersey’s multitier regulatory framework and use vehicles that lie outside the scope of the AIFM directive.

“One of the key strengths in Jersey is the range of regulatory options that you can opt for,” says Strachan.

Fund managers with less than 15 investors can operate entirely unregulated, aside from obtaining consent from the Jersey Financial Services Commission to issue securities. “The idea here is to provide GPs looking to establish a track record the chance to invite a small group of sophisticated investors to partake in their first fund,” says Strachan.

Funds with a wider offering (of up to 50 investors) can make use of a light-touch regulation regime that still allows GPs to be up and running in as little as three days. The regime is only available to “sophisticated” or “professional” investors who understand the risks of private equity investing, says Strachan. LPs under this approach must commit a minimum of £250,000, and the fund promoter must receive the blessing of a licensed fund administrator on the island before accepting investments.

A third option for funds with more than 50 investors is a vehicle comprised solely of so-called “expert investors”, who sign agreements stating that they understand the risks involved in their investment are able to bear any losses the fund experiences. “These are typically institutional investors or very wealthy individuals who have less need for government protection,” says Strachan.

“Combined, all these routes put Jersey in a unique position. It can offer private equity fund managers a route that is absolutely in line with the AIFM directive, with all the stability and comfort the directive brings, from a centre that is in close proximity to Europe,” says Strachan. “And at the same time, it offers managers the ability to market their funds outside of Europe without the need to consider the impact of the AIFM directive at all.”

Clearly the JFA feels Jersey is well positioned to continue attracting fund managers from both within and outside the EU in a post AIFM directive environment. It’s hard to imagine that same level of confidence just one year ago when the directive’s final language was far from certain. But with further AIFM rulemaking completed, and a cooperation agreement with EU regulators in place, Strachan says Jersey is “well prepared” for monumental private equity regulation being implemented just a few miles from its shores.

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This article was first published in Private Equity Manager magazine, July 2013.

Jersey’s finance industry reported a positive first quarter of 2013, with the value of funds being administered increasing to their highest level in four years.

Within the funds sector, the total net asset value of funds under administration in Jersey surpassed the £200bn barrier for the first time since March 2009, showing a quarterly increase of 6.5% to stand at £205.3bn. There was also a £1.5bn rise in the value of funds under investment management, to stand at £22.7bn at the end of the three month period.

The latest statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31st March 2013. Headline figures across all sectors of the industry include:

• The net asset value of funds under administration increased by £12.5bn from £192.8bn to £205.3bn during Q1 2013.  The total number of regulated funds increased by 7 from 1,388 to 1,395 over the same period. The total number of unregulated funds increased by 2 from 182 to 184 during the quarter.

• The value of total funds under investment management increased by £1.5bn from £21.2bn to £22.7bn during the first quarter of 2013.

• The total number of live companies increased by 287 to 32,790 at the end of Q1 2013.

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Geoff Cook commented:

‘’All sectors of Jersey’s finance industry reported good growth performance during the first quarter of 2013. Our funds sector accounted for the strongest growth with a 6.5% increase in the net asset value of funds under administration.  The largest contribution came from the private equity and venture capital asset classes where a £4bn increase was noted and hedge funds reported a £2.7bn increase.

“In addition, the investment management sector grew its assets by 7.2%.  Jersey is home to several big brands in the asset management industry as well as a number of investment management houses offering boutique services.

“These latest statistics are extremely positive.  Jersey has a strong growth plan in place for its finance industry and we are confident our jurisdiction will continue to instil confidence with investors for many years to come.”

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Nigel Strachan added:

“Particularly ahead of the introduction of the Alternative Investment Fund Managers Directive in July, it is pleasing that our funds industry continues to show strong signs of growth. Not only are new funds being launched in Jersey, with numbers of regulated and unregulated funds both increasing, but positive performances specifically in the private equity, venture capital, real estate and hedge fund asset classes reflect the confidence the international funds community has in Jersey as a specialist alternative funds centre in the long-term.”

By Geoff Cook, CEO, Jersey Finance

Despite ongoing challenging market conditions, Jersey has continued to demonstrate a significant degree of resilience across its funds sector. Figures up to the end of 2012 suggest that the global funds industry remains attracted to Jersey, with the value of assets being administered and managed in Jersey totalling over the £200bn mark.

The value of assets under administration in Jersey stood at £192.8bn as at December 2012 – up around £3.5bn year on year. In particular, Jersey continues to assert itself as a major player in the alternative fund space, with alternative asset classes accounting for around 70% of its total value of funds under administration – and private equity fund administration business specifically done in Jersey continuing to perform strongly.

Maintaining a healthy funds sector and actually growing alternative funds business against a volatile economic backdrop emphasises the positive reaction to Jersey‘s approach to the EU Alternative Investment Fund Managers Directive (AIFMD).

With private equity professionals having had some time now to digest the AIFMD’s Level II measures and with the July 2013 implementation date now imminent, things are finally moving forward. While EU countries are bringing the AIFMD into national law, so too are managers and service providers having to come to terms with exactly what the detail of the AIFMD means to them, and how they need to act in order to ensure they are fully geared up in time.

Thanks to the flexible and distinct way Jersey has approached the AIFMD, however, private equity fund managers using Jersey to domicile their funds will actually be presented with a number of opportunities as a result of the new regulation.

As a non-EU ‘third country’ for the purposes of the AIFMD but a well-established jurisdiction at the centre of European funds business, the feeling is that the AIFMD will actually enhance Jersey’s appeal to private equity professionals and affirm its long-term position as a European alternative funds centre of excellence far beyond this summer’s AIFMD deadline.

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Fully Compliant

Jersey’s funds industry, government and the regulator have been, and continue to be, intensively engaged on the AIFMD. As a result, Jersey is now in a very strong position. By maintaining a ‘business as usual’ approach to funds business within the EU, the overwhelming message is that Jersey is focused on giving the private equity community confidence and certainty.

From July, access to EU markets for Jersey will be through private placement arrangements with individual EU countries, until at least 2018.  In order to achieve this, new regulations were introduced in Jersey in April this year, mirroring EU requirements and allowing for the creation of an opt-in regime for managers wishing to market to European investors.

Individual agreements between Jersey's regulator and the regulators of Member States will be required, and Jersey's regulator is well down the road and making excellent progress in ensuring such agreements with ESMA and Member State regulators are in place in good time ahead of the July implementation date.

With bilateral cooperation agreements already in place with the majority of key EU Member States, Jersey intends to be in the first tranche of jurisdictions to be authorised to utilise the private placement route. These reassurances will give private equity professionals confidence that Jersey will provide a seamless transition for facilitating ongoing funds business within Europe this summer.

In fact, the Netherlands have already designated Jersey as one of the ‘third-countries’ they deem to be subject to adequate supervision to continue to privately place there without the manager needing a licence from the Dutch regulator.

Beyond private placement arrangements, Jersey is also committed to being fully AIFMD-compliant and obtaining an EU-wide AIFMD passport by 2015 - as soon as is possible for non-EU ‘third countries’. This will give private equity fund managers the option to market their Jersey-domiciled funds to investors right across the EU.

Jersey is also well on track in this regard, with the new regulations introduced in Jersey in April this year also paving the way for Jersey to have this Europe-wide fully-compliant regime in place ahead of 2015. In addition, the AIFMD is about regulating and authorising alternative fund managers, and this is something that Jersey already does, in line with IOSCO standards.

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Enhanced Position

Meanwhile, as a non-EU jurisdiction, Jersey is able to offer the private equity community a welcome degree of flexibility through a completely separate funds regime that lies outside the scope of the AIFMD - just as it does at the moment - for private equity fund managers who are marketing to the rest of the world and don’t want to access EU capital.

In the current climate, this makes absolute sense – private equity managers are not merely focusing on Europe: they are adopting global strategies and raising capital in markets around the world, in a large variety of cases not touching Europe at all.

In such situations, using a non-EU but European time-zone jurisdiction that is experienced in handling non-European private equity business and that isn’t touched or impacted by AIFMD regulation, such as Jersey, will be attractive.

Combined, all these routes put Jersey is a unique position. It can offer private equity fund managers a route that is absolutely in line with the AIFMD, that offers all the stability and comfort the AIFMD brings, from a centre that is in close proximity to Europe. And at the same time, it offers managers the ability to market their funds outside of Europe without the need to consider the impact of the AIFMD at all.

So while there has been some speculation that the AIFMD may prompt a migration of fund business away from offshore centres, this is not Jersey’s expectation at all. In fact, a rational analysis of the situation shows that overall Jersey’s position will actually be enhanced by its approach to AIFMD. Managers will be able to base themselves in Jersey and, from one location, meet all EU requirements while at the same time serving the rest of the world with potentially lower costs. Offering both will not be available in all offshore centres or in EU member states.

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Innovation

Based on its strong track-record of supporting international private equity business, backed up by its approach to the AIFMD, Jersey is also being seen as an attractive centre to relocate to by a growing number of alternative fund managers. Increasingly recognised for its safe environment, flexible approach and the ‘no-change’ solution it offers private equity professionals, a growing number of fund managers are establishing a presence in Jersey - seven asset managers have established a presence in Jersey over the past 12 months alone.

As the international funds community embarks on the final stretch towards the long awaited July AIFMD implementation date, competition between jurisdictions will only increase, and Jersey is not resting on its laurels.

There is a firm focus on continuing to innovate across its fund regimes and responding appropriately and effectively to market demands in order to stay ahead of its competitors.

Besides AIFMD, for instance, the industry is working with other regulatory changes, such as adopting the US Foreign Account Tax Compliance Act (FATCA) and engaging in the evolving debate on global tax information exchange, while enhancements have also been made to Jersey’s Limited Liability Partnership Law.

Remaining flexible to the needs of the private equity community and responding appropriately to regulatory developments is ensuring Jersey’s long-term appeal as a major European alternative funds centre.

With only a matter of weeks now until the AIFMD becomes a reality, Jersey’s hard work and preparation has ensured it is in a very strong position indeed to continue to support the private equity community in the long-term and remain at the forefront of international private equity business.

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This article was first published in Private Equity International magazine's Fund Administration and Technology Special, July 2013.

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By Nigel Strachan, Chairman, Jersey Funds Association

After years of build-up and months of analysing the finer points of the Level II implementation measures, the official date for the introduction of the long awaited EU Alternative Investment Fund Managers Directive (AIFMD) – perhaps the most fundamental international regulation ever introduced to impact the funds industry - is upon us.

While EU countries have been bringing the AIFMD into national law, so too are private equity fund managers, service providers and other professionals having to come to terms with exactly what the detail of the AIFMD means to them, and how they need to act in order to ensure they are fully geared up to continue to facilitate private equity business after 22nd July.

What the impact will be in terms of how private equity funds are structured once the AIFMD comes into force is undoubtedly something being considered by all private equity managers, who require a combination of certainty about being able to raise capital for and market their funds into Europe, confidence in the ability to effectively and appropriately service and support their funds, and flexibility in how they can manage their funds should they want to target non-European growth markets.

All of these considerations have formed part of Jersey’s flexible and distinct approach to the AIFMD. In fact, private equity fund managers using Jersey to domicile their funds will actually be presented with a number of fund structuring opportunities as a result of the new regulation.

As a non-EU ‘third country’ for the purposes of the AIFMD but a well-established jurisdiction at the centre of European funds business, the feeling is that the AIFMD will actually enhance Jersey’s appeal to private equity professionals, provide a compelling proposition in response to the considerations outlined above, and affirm its long-term position as a European alternative funds centre of excellence, far beyond this summer’s AIFMD introduction date.

This is important for Jersey, given its persistent strength in the alternative investment funds market. Despite ongoing challenging market conditions, Jersey has continued to demonstrate a significant degree of resilience across its funds sector, with figures up to the end of 2012 suggesting that the global funds industry remains attracted to Jersey.

The value of assets under administration in Jersey stood at £192.8bn as at December 2012 – up around £3.5bn year on year. In particular, alternative asset classes accounted for around 70% of that total value of funds under administration, with private equity fund administration business done in Jersey continuing to perform remarkably strongly.

Maintaining such a healthy funds sector and demonstrating real strength and expertise in alternative funds business – particularly against a volatile economic backdrop - emphasises the positive reaction to Jersey‘s approach to the AIFMD and should give private equity managers some real food for thought in how they structure their funds in a post-AIFMD world.

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Compliant

Jersey’s funds industry, government and the regulator have been, and continue to be, intensively engaged on the AIFMD and, as a result, Jersey is now in a very strong position. By maintaining a ‘business as usual’ approach to funds business within the EU, the overwhelming message is that Jersey is focused on giving the private equity community confidence and certainty.

From July, access to EU markets for Jersey will be through private placement arrangements with individual EU countries, until at least 2018.  In order to achieve this, new regulations were introduced in Jersey in April this year, mirroring EU requirements and allowing for the creation of an opt-in regime for managers wishing to market to European investors.

Then in May, Jersey was in the first tranche of jurisdictions for which the co-operation agreement, to be entered into with individual regulators of EEA member states and which will allow Jersey to continue to utilise the private placement route, was approved by the European Securities and Markets Authority (ESMA).

This approach will give private equity professionals the confidence they need that Jersey will provide a seamless transition for facilitating ongoing funds business within Europe this summer.

Beyond private placement arrangements, Jersey is also committed to being fully AIFMD-compliant and obtaining an EU-wide AIFMD marketing passport by 2015 - as soon as it is anticipated such passports will be available for non-EU private equity fund managers. This will have the result that private equity fund managers will be able to market their Jersey-domiciled funds to investors right across the EU.

Jersey is also well on track in this regard, with the new regulations introduced in Jersey in April this year also paving the way for Jersey to have this Europe-wide fully-compliant regime in place ahead of 2015. The AIFMD is all about regulating and authorising alternative fund managers, and this is actually something that Jersey already does, in line with IOSCO standards.

As far as private equity fund structuring in Europe is concerned, Jersey has all the elements in place to ensure this will happen smoothly, with all the comfort, stability and reassurance that the AIFMD brings.

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Flexibility

Meanwhile, as a non-EU jurisdiction, Jersey is also able to offer the private equity community a welcome degree of flexibility through a completely separate funds regime that lies outside the scope of the AIFMD - just as it does at the moment - for private equity fund managers who are marketing to the rest of the world and don’t want to access EU capital.

In the current climate, this makes absolute sense – private equity managers are not merely focusing on Europe: they are adopting global strategies and raising capital in growth markets around the world where wealth is being created and investment opportunities are sought after. In a large variety of cases, this means not touching Europe at all, but targeting, for instance, markets in the Far East.

In such situations, using a non-EU but European time-zone jurisdiction that is experienced and has expertise in handling non-European private equity business and that isn’t touched or impacted by AIFMD regulation, such as Jersey, will be attractive.

Combined, all these routes put Jersey is a unique position. It can offer private equity fund managers a route that is absolutely in line with the AIFMD, that offers all the stability and comfort the AIFMD brings and that would be offered by an EU Member State, from a centre that is in close proximity to Europe.

And at the same time, it offers managers the ability to market their funds outside of Europe without the need to consider the impact of the AIFMD at all.

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Enhanced

While there has been some speculation that the AIFMD may prompt a migration of fund business away from international finance centres, this is not Jersey’s expectation at all. In fact, a rational analysis of the situation shows that overall Jersey’s position will actually be enhanced by its approach to AIFMD.

Private equity managers will be able to base themselves in Jersey and, from one location, meet all EU requirements while at the same time serving the rest of the world - with potentially lower costs. Offering both will not be available in all international finance centres or indeed in EU Member States.

With this in mind, far from a migration of private equity business away from international finance centres, the expectation is to see continued growth in private equity funds being structured through Jersey.

It may be that more parallel structures will be established in onshore EU markets, for fund managers who need to satisfy overwhelming specific investor demand for keeping a fund onshore - with the potential additional compliance costs that could bring - but this is not anticipated to be in place of funds ‘offshore’, which in Jersey’s case will continue to offer a good value, flexible, robust option to cater for all aspects of private equity business.

In addition, based on its strong track-record of supporting international private equity business, backed up by its approach to the AIFMD, Jersey is also being seen as an attractive centre to relocate to by a growing number of alternative fund managers.

Increasingly recognised for its safe environment, flexible approach, world class legal, accounting and administration supporting infrastructure, and the ‘no-change’ solution it offers private equity professionals, a growing number of fund managers are establishing a foothold in Jersey - seven asset managers have established a presence in Jersey over the past 12 months alone.

Moreover, as the international funds community embarks on the final stretch towards the long awaited July AIFMD implementation date, competition between jurisdictions will only increase, and Jersey is not resting on its laurels. Encouraging fund structuring through Jersey doesn’t stop at AIFMD, and there is a firm focus on continuing to innovate across its fund regimes and responding appropriately to market demands in order to stay ahead of competitors.

Besides AIFMD, for instance, the industry is working with other regulatory changes, such as the US Foreign Account Tax Compliance Act (FATCA) and engaging in the evolving debate on global tax information exchange. At the same time, Jersey’s broad range of fund regimes are kept under constant review - enhancements made to Jersey’s Limited Liability Partnership Law being a recent example.

With the AIFMD shortly to become a reality, Jersey’s hard work and preparation has ensured it is in a very strong position indeed to continue to support the private equity community and remain at the forefront of international private equity business. Managers will have to consider the options most appropriate to them in how they structure their funds but, with the certainty and flexibility it will provide in a post-AIFMD world and the expertise its funds sector can offer, Jersey is a very attractive long-term proposition.

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This article was first published in Real Deals magazine's Fund Structuring Guide, June 2013.

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The European Securities and Markets Authority (ESMA) has approved a cooperation agreement with Jersey to ensure it can continue to deliver alternative investment funds business into Europe after the introduction of the EU Alternative Investment Fund Managers Directive (AIFMD) in July.

ESMA’s Board of Supervisors approved the Memorandum of Understanding (MoU) at its 22 May meeting. ESMA negotiated the agreement on behalf of all 27 EU Member State securities regulators as well as the authorities from Croatia, Iceland, Liechtenstein and Norway. The agreement, which will be signed by John Harris, Director General of the Jersey Financial Services Commission, enables alternative investment fund managers using Jersey to continue to seamlessly market into Europe through private placement rules until at least 2018.

In April this year, specific regulations mirroring AIFMD criteria were introduced in Jersey to ensure it would comply where relevant with all criteria set out in the AIFMD. The regulations also pave the way for the creation of a European-wide passport regime for alternative investment funds in anticipation of July 2015 when European-wide marketing passports will potentially become available to non-EU Alternative Investment Fund Managers.

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Mike Jones said:

“It has always been Jersey’s intention to be in the first tranche of jurisdictions to sign this AIFMD cooperation agreement and I am delighted that, following months of preparation work and constructive engagement with ESMA and the regulators of individual EU Member States, that agreement is now in place. It puts Jersey in a very strong position and ahead of schedule in terms of the AIFMD introduction date on 22 July.”

As a non EU jurisdiction, alongside an AIFMD-compliant regime, Jersey will also continue to offer fund managers a separate regime that lies outside the scope of the AIFMD for managers wishing to market to the rest of the world.

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Geoff Cook added:

“This is a major step in ensuring that Jersey can continue to facilitate alternative investment funds business within Europe, and will give alternative investment fund managers a huge amount of confidence in using Jersey. While Jersey’s approach to the Directive will offer a seamless transition when it comes into force in July, it will also offer a welcome degree of flexibility in offering a completely separate regime for fund managers wishing to market to non-EEA countries. This is not something all international finance centres, nor any EU nations, can offer, so in this sense the Directive will actually enhance Jersey’s appeal as a specialist centre for alternative funds business.”

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Nigel Strachan commented:

“With the alternative asset classes, including hedge, private equity and real estate, accounting for almost three quarters of funds business done in Jersey, this is an extremely welcome move that secures Jersey’s position as a leading funds centre both in a European and a wider global context. Jersey has positioned itself well ahead of the game and is in a strong position to support managers and service providers ahead of the July introduction date. This also reflects once again Jersey’s commitment to complying with international standards.”

By Geoff Cook, CEO, Jersey Finance

Despite ongoing challenging market conditions, Jersey has continued to demonstrate a significant degree of resilience across its funds sector. Figures up to the end of 2012 suggest that the global funds industry remains attracted to Jersey, with the value of assets being administered and managed in the jurisdiction totalling more than £200bn.

The value of assets under administration in Jersey stood at £192.8bn as at December 2012 – up around £3.5bn year-on-year. In particular, Jersey continues to assert itself as a major player in the alternative fund space, with alternative asset classes accounting for around 70% of its total value of funds under administration. Specifically, it is pleasing that the value of hedge fund administration business done in Jersey grew in the fourth quarter of 2012 by around £5bn.

Maintaining such a healthy funds sector against a volatile economic backdrop emphasises the positive reaction to Jersey‘s approach to the EU Alternative Investment Fund Managers Directive (AIFMD).

Hedge fund professionals have now had some time to fully digest the AIFMD’s Level II measures and, with the July implementation date now imminent, things are finally moving forward, at quite a pace - EU countries are bringing the AIFMD into national law, non-EU countries are responding in different ways and fund managers and service providers are gearing themselves up for a post-AIFMD world.

Thanks to the flexible and distinct way Jersey has approached the AIFMD, hedge fund managers using Jersey to domicile their funds could be presented with a number of opportunities.  As a non-EU ‘third country’ for the purposes of the AIFMD but a well-established jurisdiction at the centre of European funds business, the feeling is that the AIFMD could actually enhance Jersey’s appeal to hedge fund professionals and affirm its long-term position as a European alternative funds centre of excellence far beyond the introduction of the AIFMD this summer.

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AIFMD-compliant

Jersey’s funds industry, government and the regulator have been, and continue to be, intensively engaged with the AIFMD and, as a result, Jersey is now in a very strong position. The overwhelming message is that the jurisdiction will give the hedge fund community confidence by maintaining a ‘business as usual’ approach to funds business within the EU.

Jersey will be able to do this through private placement arrangements with individual EU countries until at least 2018. In order to demonstrate it meets EU requirements, in April Jersey introduced its own set of AIFMD regulations for managers wishing to market to European investors that mirror EU requirements.

In addition, Jersey is well on track in working with ESMA to ensure it is in the first tranche of jurisdictions to sign a pan-European multilateral agreement with EEA Member State regulators that will authorise it to utilise the private placement route.

At the same time, Jersey is also committed to obtaining an EU-wide AIFMD passport by 2015 - as soon as is possible for non-EU ‘third countries’ – giving hedge fund managers the option to market their Jersey-domiciled funds to investors across the EU.

Jersey is also well on track in this regard and intends to have a fully-compliant regime ahead of 2015. The AIFMD is about regulating and authorising alternative fund managers, and this is something that Jersey already does, in line with IOSCO standards.

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Flexibility

Meanwhile, as a non-EU jurisdiction, Jersey is able to continue to offer a degree of flexibility through a completely separate funds regime that lies outside the scope of the AIFMD, just as it does at the moment, for hedge fund managers who are marketing to the rest of the world and don’t want to access EU capital.

This makes sense - in the current climate, hedge fund managers are not just focusing on Europe, they are adopting global strategies and raising capital in markets around the world, not touching Europe at all. In such cases, using a non-EU but European time-zone jurisdiction that is experienced in handling non-European hedge fund business, such as Jersey, will be attractive.

Combined, these routes put Jersey in a unique position. It can offer hedge fund managers a route that is absolutely in line with the AIFMD, in close proximity to Europe and benefiting from all the stability and comfort the AIFMD brings. And at the same time, it offers managers the ability to market funds outside of Europe without the need to worry about the AIFMD at all.

So while there has been some speculation around the AIFMD prompting a migration of fund business away from offshore centres, this is not Jersey’s expectation at all. Overall, Jersey’s position will actually be enhanced by its approach to the AIFMD. Managers will be able to base themselves in Jersey and meet EU requirements while at the same time serving the rest of the world with potentially lower costs. Offering both will not be available in all offshore centres or in EU member states.

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Innovation

As a result of its approach to the AIFMD, a growing number of hedge fund managers are also seeing Jersey as an attractive centre to relocate to. Jersey is increasingly being seen as a safe environment, a flexible option and a ‘no-change’ solution for hedge fund managers. Indeed, a growing number of fund managers are establishing a presence in Jersey – seven asset managers have set up in Jersey in the past 12 months alone.

Meanwhile, Jersey is not resting on its laurels and continues to innovate across its fund regimes and respond to market demands to stay ahead of its competitors. Besides the AIFMD, the industry is working with other global regulatory changes, such as the US Foreign Account Tax Compliance Act (FATCA) and Dodd-Frank.

Remaining flexible to the needs of the industry and responding appropriately to regulatory developments, particularly the AIFMD, is ensuring Jersey can not only maintain but actually enhance its long-term appeal as a major European alternative funds centre.

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This article was first published in Hedge Fund Manager Week, 30 May 2013.

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Over 400 funds professionals in Jersey heard that the jurisdiction is in a good position to continue to attract high quality funds business both in and outside of Europe this year, at the annual Jersey Funds Association (JFA) dinner.

The black tie event, which was attended by 420 people including funds professionals, as well as government, regulator and other industry representatives, took place at the Hotel de France on Friday 15th March. Bespoke fund administration and custody services provider Kleinwort Benson was the event’s lead sponsor, with Ipes, JP Morgan, JTC Group and Moore Fund Administration as silver sponsors. A champagne reception was also sponsored by BNP Securities Services.

At the event, Nigel Strachan, Chairman of the JFA, highlighted that, whilst 2012 had been a challenging year for the global funds community, Jersey had weathered the storm well and could remain optimistic given a positive set of end-of-year results for the funds industry. As at the end of December 2012, the net asset value of funds under administration in Jersey had risen to 192.8 billion – up £3 billion year on year.

A raffle held on the night to win an iPad Mini, donated by Aztec Group, and a case of champagne, donated by Volaw Fund Services, raised a total of £5,450 in aid of the Multiple Sclerosis Society and the Teenage Cancer Trust.

In addition, entertainment was provided by one of the UK’s top live comedians, Ed Byrne, who appears regularly on Mock the Week and Have I Got News For You, with music being performed during and after dinner by renowned musician Joe Stilgoe and MOBO-nominated singer-songwriter Natalie Williams.

Nigel Strachan said:

“As I enter my final year as Chairman of the JFA, I’m pleased that Jersey’s funds industry has remained resilient and is now extremely well placed to prosper in a new-look funds landscape. Political shifts and regulatory pressures across the globe have made fundraising difficult over the past 12 months, but Jersey has adapted well.

“Its approach to the EU Alternative Investment Fund Managers Directive in particular has enabled it to offer an ongoing compliant route into Europe and a regime that lies outside the scope of the Directive for non-European markets - a combination that I believe will be hugely attractive to the alternative investment fund community.

“The JFA continues to work hard on behalf of the industry, reviewing Jersey’s product range and legislative and regulatory framework, and it is fantastic to be able to recognise that hard work and the efforts of so many fund professionals in Jersey at our annual dinner.”

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More than 350 practitioners including leading lawyers, fund managers and other finance professionals were given an update on how Jersey intends to remain a first choice jurisdiction for international fund professionals at the annual Jersey Finance Funds Conference in London on March 7th.

The event this year moved to the British Film Institute IMAX Theatre near Waterloo, which enabled Jersey Finance to accommodate a greater number of delegates than in previous years. To take advantage of the innovative venue, a specially prepared short film was screened in which delegates were given an introduction in 3D to Jersey’s successful finance industry and the contribution of the funds industry, which at the end of 2012 was valued at £192 billion.

The funds conference included a keynote speech from BBC broadcaster Nick Robinson, who spoke about the relationship between politics and the economy, and the involvement of Allister Heath, the financial commentator and editor of City AM, who acted as moderator for panel sessions.

The panel debates were focused on Jersey’s readiness to meet the introduction of the EU’s Alternative Investment Fund Managers Directive (AIFMD), the funds industry picture in the UK and EU, and its relationship with Jersey and the opportunities for centres such as Jersey in developing markets working in partnership with practitioners in London.

UK-based practitioners on the panels highlighted the strength of Jersey’s offering, citing the combination of its first class regulatory standards and expertise, together with the island’s product range and its moves to accommodate the changes required when the EU Directive is implemented, as reasons why Jersey had a positive platform to further develop its funds sector.

Another theme to emerge was that a number of established alternative fund managers were considering an increasing presence or opening new offices in Jersey to best take advantage of the changing regulatory landscape and Jersey’s position in it.

Jersey confirmed it was on track to meet the requirements of the AIFMD and that it would introduce new fund regulations in April as part of the approach to complying with the Directive.

Geoff Cook, CEO, Jersey Finance, who addressed the conference, commented:

‘‘The move to a new prominent and innovative venue coupled with thought leading commentary on the funds industry meant we attracted our largest ever audience for the Jersey Finance annual funds event. We had an excellent turn out of senior London practitioners and the feedback we received reaffirms that our industry strategy is the right one to adopt. We are confident that we will satisfy the criteria to comply with the AIFMD and remain attractive both for ongoing ‘business as usual’ activity with Europe and also the increasing volume of business targeting markets outside the Eurozone.

“At the same time, there is also evidence of an uptake of new entrants from the funds sector having an enhanced presence and in some cases opening new offices in Jersey.

“These developments, coupled with our traditional values of stability and good governance, ensure Jersey remains well placed to enhance its position as a jurisdiction of choice for the international funds and asset management community.”

In addition to contributions from Jersey based speakers, there were presentations and comment from specialist practitioners in London including representatives from the European Private Equity and Venture Capital Association (EVCA).

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Jersey’s finance industry has reported a steady performance during 2012 with the size of the fund administration business increasing year on year.

The total net asset value of funds under administration stood at £192.8 billion at the end of the year, up from £189.5 billion in the three month period. The value of the funds business has risen overall during 2012 by just over £3 billion.

The latest statistics, collated and prepared by the Jersey Financial Services Commission, are for the three month period ending 31st December, 2012. Headline figures include:

•    The net asset value of funds under administration increased by £3.3bn from £189.5bn to £192.8bn during Q4 2012. The total number of regulated funds decreased by 4 from 1,392 to 1,388 over the same period. The total number of unregulated funds increased by 7 from 175 to 182 during the fourth quarter.

•    The value of total funds under investment management increased by £0.3bn from £20.9bn to £21.2bn during the fourth quarter of 2012.

•    The total number of live companies stood at 32,503 at the end of December 2012.

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Geoff Cook commented:

“Jersey’s finance industry performance remained steady in the twelve months ending December 2012, and with the total net asset value of funds under administration increasing in the final quarter there are positive signs for the year ahead. The investment management sector is also showing stable business results.

"In the funds sector, the net asset value of specialist funds saw the biggest increase by £2.3bn, with the value of private equity funds growing by 2.2% and the value of hedge funds increasing by 2%. Jersey is also well on track with the implementation of the AIFMD regime and remains a first choice jurisdiction for fund managers and funds.’’

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A range of funds experts from across Europe will explore the opportunities for fund professionals and the role of international finance centres at the 8th annual Jersey Finance funds conference, to be held in London in March.

The conference, entitled ‘The Big Picture’, will be held at the British Film Institute’s IMAX Theatre on Thursday 7th March, and will feature as the keynote speaker renowned broadcaster and BBC political editor Nick Robinson, who will provide an assessment of the current and potential future political landscape.

With City AM’s editor Allister Heath acting as moderator for the event, this year’s conference will include three panel sessions featuring a range of Jersey, UK and European practitioners who will explore key issues facing the international funds industry.

The first will look at opportunities for London practitioners after the introduction of AIFMD in July this year, and how offshore centres like Jersey can continue to prove attractive for private equity, real estate and hedge fund business. Another panel will see players from the major markets of the UK, France and Sweden discussing the offshore world’s relationship with onshore Europe. The final ‘technical’ panel will debate trends in the marketplace and discuss developments in the finer points of fund structuring.

A short film presented by Simon Witney, Chairman of the EVCA’s Tax and Legal Committee, will focus on the state of the European alternative fund sector and the main issues facing the key centres of London, Paris, Frankfurt and Stockholm.

Geoff Cook, Jersey Finance, who will provide an introduction at the event, said:

“After another challenging year for funds professionals, this year’s conference aims to look beyond the introduction of the long-awaited AIFMD and focus on the future of the international funds sector – a future that, with its carefully considered approach to AIFMD, Jersey plans to be very much a part of. To this end, I am delighted that we have been able to bring together a number of real thought leaders for our event this year who will look at a range of threats and opportunities for practitioners and the relationship between offshore and onshore centres. I am sure the event will generate some interesting and thought-provoking debate.”

Nigel Strachan, added:

“Jersey’s funds sector continues to perform well, with the net asset value of funds under administration remaining stable around the £190bn mark and the number of funds continuing to grow. Particularly pleasing is that the alternative asset classes remain strong in Jersey, representing around 70% of total funds business. With that in mind, this conference will prove invaluable in illustrating how Jersey can not only maintain a strong funds sector with the introduction of AIFMD, but also present alternative fund managers with some real opportunities.”

Jersey Finance’s ‘The Big Picture’ annual London funds conference takes place on March 7th 2013 at the BFI Imax Theatre, Southbank, London, starting at 12.30pm and finishing at 5.30pm, with a drinks reception afterwards until 7pm.. Further information is available and places can be booked at www.jerseyfinance.je/events.