On 11 March 2019, Guernsey and Jersey's financial services regulators signed a Memorandum of Understanding (MoU) with the UK's Financial Conduct Authority to ensure certainty around accessing UK investor capital for Guernsey and Jersey investment funds after Brexit.
It allows funds domiciled in Guernsey and Jersey to continue to be marketed to UK investors through the private placement regime.
Guernsey and Jersey has a market access agreement with the 28 Member States of the European Union under the EU's Alternative Investment Fund Managers' Directive (AIFMD). The agreement was made and signed with the European securities regulator, the European Securities and Markets Authority (ESMA). Once the UK leaves the EU, it'll cease to be a signatory to the agreement, and so the separate MoU has been agreed between the UK and the islands. It'll come into effect if EU law no longer applies in the UK and will mean that Guernsey and Jersey funds will still be able to be marketed into the UK.
Kees Jager, Director of Fund Services in Guernsey, commented "the continued cooperation with the UK regulatory authorities and this MoU is vital for the Guernsey and Jersey fund markets. It'll give managers confidence that the islands will still have access to UK capital irrespective of how Brexit unfolds."
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