The practical implications of dealing with the EU’s Alternative Investment Fund Managers Directive (AIFMD) in Guernsey were explored at a recent seminar held by KPMG in the Channel Islands.
Over the last two years, the firm’s AIFM team has been working with clients to address the requirements of the directive. The seminar provided an opportunity to draw on those experiences and provide feedback to industry on some of the key practical challenges.
Neale Jehan, CI head of Audit at KPMG who has led the industry response in Guernsey, said the key message to delegates was the importance of taking appropriate actions immediately and certainly before the end of the transitional period to 22 July 2014.
‘Guernsey remains well positioned for the future, even if there is any further delay in implementation across Europe, but the industry must understand the current implications for Guernsey businesses and address them now,’ he said.
Charles Muller, KPMG’s European head of funds regulation, had provided Mr Jehan with an update on progress within Europe before the seminar and endorsed Guernsey’s dual regime for the future.
Oliver Morris, former technical director at the British Private Equity and Venture Capital Association (BVCA) who is now covering London and the Channel Islands as KPMG’s AIFMD specialist, spoke at the event about the challenges within risk management, valuation and reporting.
‘While the impact of AIFMD should not be underestimated there are proportionate and practical solutions to the key issues faced in Guernsey,’ said Mr Morris.
KPMG’s advisory manager Antony Prynn also presented, on the question of substance, and highlighted examples of improvements that could be made to better demonstrate activities undertaken in Guernsey. Audit assistant manager Chris Thoume talked on the depositary requirements of the directive and spotlighted the challenges of independence and cash monitoring.
‘There are many considerations across the wide range of industry topics that AIFMD covers, but we have learned a great deal from working on these areas over the last 18 months. The time for action is now,’ said Mr Jehan.