The number of Jersey-registered fund managers marketing into Europe through national private placement regimes (NPPRs) under the Alternative Investment Fund Managers Directive (AIFMD) continued to rise during 2016, according to the latest figures from Jersey’s regulator the Jersey Financial Services Commission (JFSC).
As at December 2016, 127 alternative investment fund managers (AIFMs) had been authorised in Jersey to market into Europe through NPPRs, up more than one fifth (22%) compared to December 2015, clearly highlighting that the use of private placement continues to work well as a means of marketing funds into the EU.
Over the same period, the total number of Jersey alternative investment funds (AIFs) being marketed into Europe through NPPRs also increased significantly to stand at 254, representing a 10% year-on-year increase.
In addition, the JFSC has now authorised a total of 29 depositaries in Jersey under AIFMD, a figure that has risen 12% over the year.
The sustained interest in private placement will be one of the issues to come under the microscope at the 2017 Jersey Finance Annual London Funds Conference later this month (21 March), which will examine how recent regulatory, market and geopolitical shifts are impacting the global funds industry.
Geoff Cook, CEO, Jersey Finance, said:
“This sustained rise in private placement figures for Jersey shows that the alternative fund management community continues to find that the NPPR is an effective way to market funds into the EU and that there is real appeal in the stable and certain platform Jersey offers. Particularly against the backdrop of Brexit with market proving such a critical issue for managers, private placement is providing a seamless, cost-effective and flexible route into key European investor markets. Given that around one third of fund assets administered through Jersey are based in continental EU states, this is really important to both Jersey and those EU Members States.”
Mike Byrne, Chairman, Jersey Funds Association, added:
“Although frustratingly third-country passporting has become something of a political football following Brexit, the reality is that private placement is being shown to work extremely well. With the theme of change looking set to dominate the global funds landscape this year too, the signs are that Jersey’s tried and tested route into Europe will continue to give hedge, private equity, real estate and infrastructure fund managers in the UK, US and Asia the confidence and operational flexibility they need when it comes to fund distribution.”