Guernsey Signs UK MoU To Ensure Funds Access After Brexit
by Jason Gorringe, Lowtax.net, London
20 March, 2019
Guernsey's financial services regulator has signed a Memorandum of Understanding with the UK's Financial Conduct Authority to ensure market access for Guernsey investment funds into the UK after Brexit.
Guernsey has a market access agreement with the 28 member states of the European Union under the EU's Alternative Investment Fund Managers' Directive. The agreement was made and signed with the European securities regulator, the European Securities and Markets Authority (ESMA).
Once the UK leaves the European Union at the end of this month, it will cease to be a signatory to the agreement, and so the separate MoU has been agreed between the UK and the island. It will come into effect if EU law no longer applies in the UK, either through a no-deal Brexit or at the end of any transitional arrangements once the UK leaves the EU, and will mean that Guernsey funds will still be able to be marketed into the UK.
"We welcome the continued cooperation with UK regulatory authorities and this timely MoU signing, which ensures the continuity, stability and certainty of access when marketing Guernsey funds," said Dominic Wheatley, Chief Executive of Guernsey Finance.
Guernsey uses National Private Placement Regimes to access European investors. Guernsey funds can be registered for sale in more than 50 jurisdictions worldwide, including the USA, European Union, and China, which together represent more than 80 percent of the world economy.
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