Much focus in Europe in recent years has been on the
European Union's (EU's) drive for increased regulation,
principally through the Alternative Investment Fund Managers
Directive (AIFMD).
As a result, promoters and investors from further afield have
become more cautious about raising money from within Europe because
of what they regard as a growing compliance burden and increased
costs.
The Guernsey model
However, rather than being part of the problem, Guernsey is part
of the solution because while the Island is in Europe
geographically, it is not in the EU and therefore, has not been
required to implement AIFMD. Guernsey offers a dual regulatory
regime whereby it is possible to continue to distribute Guernsey
funds into both EU and non-EU countries. The approach means
managers and funds with no connection to Europe can still use
Guernsey's continuing regulatory rules which are free from the
requirements and costs associated with AIFMD.
