Pursuant to the Alternative Investment Fund Managers Directive (Directive 2011/61/EU) (“AIFM Directive”) the European Securities and Markets Authority (“ESMA”) yesterday approved a Memorandum of Understanding (“MoU”) with the Guernsey Financial Services Commission.

Once signed, the MoU should satisfy the requirement under the AIFM Directive that Guernsey has co-operation agreements in place between Guernsey’s regulator and the equivalent regulators in the EU member states in order for Guernsey fund managers to continue to use EU member states’ National Private Placement regimes after 22 July 2013 (being the final implementation date of the AIFM Directive).

The MoU may also satisfy the requirement under the AIFM Directive that Guernsey has co-operation agreements in place for the purposes of the Passport Regime, which is expected to be made available from September 2015. When available, the Passport Regime should enable Guernsey fund managers to market non-EU investment funds across the EU.

Click here for Guernsey Finance’s announcement in respect of the MoU.