News

Guernsey and Jersey funds gain Brexit MoUs with London

Memorandum of understanding The two fund domiciles of Jersey and Guernsey, which specialise in alternative investment vehicles, have gained agreements between the islands’ financial regulators and their UK counterpart that clarifies their funds will have access to UK investors in the event of Brexit.

The Jersey Financial Services Commission and the Guernsey Financial Services Commission have each signed a separate memorandum of understanding (MoU) with the UK’s Financial Conduct Authority.

In Jersey’s case, trade bodies on the island say the MoU “should give fund managers added certainty around accessing UK investor capital through Jersey in the lead up to Brexit”.

Jersey Finance and the Jersey Funds Association (JFA) said the MoU means funds domiciled in Jersey will be allowed to continue marketing to UK investors through private placement even if EU law ceases to apply in the UK in the event of a ‘no deal’ Brexit or at the end of any transitional period.

Joe Moynihan, the recently appointed Jersey Finance chief executive, said: “This MoU is a precautionary measure and should give managers using Jersey for their fund structuring added confidence that access into the significant UK investor market will continue uninterrupted and irrespective of how Brexit unfolds.”

Mike Byrne, chairman of the JFA, said the UK was a “vital market for Jersey”.

Dominic Wheatley, chief executive of Guernsey Finance, said: “We welcome the continued cooperation with UK regulatory authorities and this timely MoU signing, which ensures the continuity, stability and certainty of access when marketing Guernsey funds.”

©2019 funds europe