The European Securities and Markets Authority (ESMA) has recommended granting Jersey funds and managers an AIFMD (Alternative Investment Fund Managers Directive) passport.
The Jersey Financial Services Commission (JFSC) said that it has engaged with ESMA and has been working closely with member state regulators for the assessment.
The European Commission will now have a period of six months to propose appropriate legislation.
JFSC director of policy Mike Jones said: “We are delighted with this further announcement from ESMA recommending Jersey be granted a ‘third country’ passport, which positively recognises the Island’s robust AIFMD framework and fully compliant regime which has been introduced.”
The European Parliament and Council of Ministers will have the same timeline to agree to make the third country passporting rules applicable to Jersey AIFs and AIFMs.
“Jersey is one of Europe’s leading centres for alternative funds business and the JFSC is committed to supporting the Industry by ensuring we have the right frameworks in place to ensure long term success,” Jones added.