NPPR and new Private Funds regime drive continued funds growth in Jersey

The combination of increasing use of Jersey's existing NPPR route for non-EU fund managers to market to EU investors and strong take-up of the new Jersey Private Funds regime for funds with up to 50 investors is proving enormously successful, according to new funds figures.

Statistics from the Island's financial services regulator – the Jersey Financial Services Commission – show an increase of 10% in the number of funds being marketed using the NPPR route into Europe in the 12 months up to the end of June, and a total of 44 registrations under the Jersey Private Funds regime in its first four months of operation.

The figures also show an increase of 14% in the number of Jersey alternative investment fund managers (AIFMs) authorised  by the JFSC to market into Europe through NPPRs under the Alternative Investment Fund Managers Directive (AIFMD). 

Emily Haithwaite, an investment funds partner in Ogier's Jersey team, said that the buoyant figures reflected the work being done by Ogier's team.

"The increased use of the NPPR route demonstrates that the market views it as a workable, efficient and cost-effective solution for accessing EU investors, at a time when the burden of the AIFMD passport on managers frequently outweighs its benefits and when there is still much uncertainty over access to the single market for UK managers following Brexit," she said.

"Our own pipeline of work reflects this healthy appetite for Jersey funds generally and the strength of the new Jersey Private Funds regime in particular. Our experience, and the positive messages that we hear from fund managers, chimes with the picture that emerges from these statistics."