ARTICLE · 02 JANUARY 2025

The EU's AIFMD II Changes Make Guernsey Funds More Attractive

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The EU's original Alternative Investment Fund Managers Directive was amended with effect from 15 April 2024 (with the new rules applying from 15 April 2026) ("AIFMD II").

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Annette Alexander

Christopher Anderson

Matthew Brehaut

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The EU's original Alternative Investment Fund Managers Directive was amended with effect from 15 April 2024 (with the new rules applying from 15 April 2026) ("AIFMD II"). Our briefing note on the broader implications of AIFMD II can be found here.

AIFMD II has a significant impact on EU alternative investment funds ("AIFs"), and their managers ("AIFMs"), engaging in loan origination. These additional regulations come with inevitable cost implications, which reduce returns to EU AIF investors and increased costs to EU AIFMs.

Other than some comparatively minor additional reporting obligations, these provisions do not affect Guernsey AIFs or Guernsey AIFMs. This further enhances the attractiveness of Guernsey as a domicile for loan originating AIFs.

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