Guernsey Funds And The AIFMD

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 as 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 result of the United Kingdom's 2016 referendum does not impact Guernsey's relationship with the EU. However, Guernsey's current "Protocol 3" relationship (whereby Guernsey falls within the common customs area, the common external tariff, and within the EU for most of the purposes of the free movement of goods) will fall away when the UK leaves the EU and will need to be replaced with new