Impact Analysis for Jersey and Guernsey Investment Funds
After a protracted period of negotiation the AIFM Directive was
finally approved by the European Parliament on 11 November
2010.
The Directive is expected to be brought into force shortly and
will regulate the activities of managers of alternative investment
funds ("AIF Managers") as follows:
- if the AIF Manager is based in the EU, on its worldwide
activities; and
- if the AIF Manager is based in a third country outside the EU
(a "Third Country"), only to the extent
that it has activities within the EU.
The position of Third Country AIF Managers was initially
contentious but has now been resolved by creating a dual system of
allowing the existing private placement rules to continue until at
least 2018, while also phasing in an option for Third Country AIF
Managers to qualify under an EU passporting regime.
