Jersey is understood to be exploring the introduction of a manager-led product similar to the Luxembourg’s Reserved Alternative Investment Fund (RAIF), according to a source with knowledge of the situation. The Jersey Funds Association declined to comment on the product.
In 2015, Luxembourg announced its new AIF vehicle, the RAIF, which is expected to be adopted in June. The RAIF should speed up the establishment of funds because it does not need approval from Luxembourg’s financial regulator, the CSSF.
Since Luxembourg’s announcement, other jurisdictions have been racing to provide alternative products to fund managers.
In February, Malta launched the Notified AIF (NAIF). The NAIF will not require licensing by the Malta Financial Services Authority and will not be subject to ongoing supervision. This regime is expected to be applied by the summer.
More recently, Guernsey launched a new fund category, the Manager Led Product (MLP). The MLP regime sits alongside the island’s existing products for open-ended and closed-ended funds. It is a European-aligned regime, matching the requirements of the European Union’s Alternative Investment Managers Directive (AIFMD) to the regulatory obligations of the fund manager, rather than the direct regulation of funds themselves, as reported by pfm.
The Channel Islands are also waiting for the European Securities and Markets Authority’s decision on whether it will grant third-country AIFMD passports.
If Jersey is granted a third-country AIFMD passport this summer, it will enable the island to offer a full range of options to fund managers, said the source.
Find out more information about Jersey and Guernsey in pfm’s July/August magazine out on July 1 2016.
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