JERSEY: Commission Launches AIFMD Regime following Agreement of ESMA MoU

Monday June 3 2013

The Jersey Financial Services Commission (the “Commission”), on 31 May 2013, outlined the timetable for implementing Jersey’s regulatory regime in relation to the Alternative Investment Fund Managers Directive (2011/61/EU) of the European Parliament and of the Council of 8 June 2011 (the “Directive”) following the approval of the European Securities and Markets Authority (“ESMA”) coordinated cooperation agreement on 22 May 2013.

It is important to note that the regulatory regime for Jersey investment funds, managers and depositaries falling outside the scope of the Directive remains quite separate and entirely unaltered.

The Commission has prepared draft Codes for the purpose of establishing sound principles and providing practical guidance for the conduct of AIFs, AIFMs and depositaries established in Jersey who, from 22 July 2013 are either (i) managing a European AIF, or (ii) marketing any AIF in Europe.

The Commission will shortly be publishing a consultation paper in relation to the draft Codes and subject to consultation, the Codes will come into effect on 22 July 2013.

The Commission will also amend the CIF Certified Funds Codes and the Fund Services Business (“FSB”) Codes to include an additional principle which cross-refers to the relevant requirements of the Codes as far as the Codes apply to the fund or the FSB in question. The Commission will also consult publicly in relation to these proposed changes.

The Commission will shortly be consulting on a Jersey Eligible Investor Fund Guide setting out the principal characteristics of an additional new type of fund devised to respond to the requirements of the Directive.

The Commission proposes to introduce a straightforward fees regime to levy fees on AIFs and service providers to AIFs which have not previously paid fees. The proposed regime will not impose any fee on any business which has previously paid a fee to the Commission in respect of its CIF or FSB activities. The Commission will shortly be publishing its consultation paper in relation to this.

Various Orders have been prepared under the Regulations, or under other legislation, which clarify the scope of application of (and exemption from) the Regulations and other legislation. The Commission expects these Orders to be finalised in advance of 22 July 2013.

The timetable in relation to the Directive has been dictated by the European Union’s timetable. The Commission is grateful in advance for any comments received within the timescales set out in the various forthcoming consultation papers, which will be necessarily shorter than is usually the case.

Please see the above link for more details.