Guernsey Funds And The AIFMD

Guernsey vis-à-vis the European Union

Guernsey is a Crown Dependency. The Bailiwick of Guernsey (Guernsey, together with Herm, Sark, Alderney and the surrounding islets) is part of the British Isles but independent of the UK. It is neither a member nor an associate member of the European Union (the "EU") and as such is classified das a third- country. Guernsey is therefore not required to comply with EU directives such as the Alternative Investment Fund Managers Directive (the "AIFMD"). Guernsey has, however, passed equivalent legislation in certain areas to facilitate access to EU markets.

THE IMPACT OF BREXIT

The United Kingdom's 2016 departure from the EU did materially impact Guernsey's relationship with the EU: Guernsey was not a Member State of the EU prior to Brexit. However, Guernsey's "Protocol 3" relationship (whereby Guernsey fall within the common customs area, the common external tariff and within the EU for most of the purposes of the