As part of the preparation of advice by European Securities and Markets Authority (ESMA) to the EU Institutions on the application of the third country passport under the Alternative Investment Fund Managers Directive, ESMA asked for an evaluation of the impact on the flow of investment into the EU. The Guernsey Financial Services Commission (GFSC) undertook a survey of Guernsey fund administration companies to estimate the expected inflow of funds by size and type into the EU from Guernsey if the passport were to be granted. The results of the survey were subsequently published on 12 September.
From an industry-wide perspective the GFSC survey projected that there would be a 12% increase in the number of Guernsey funds launched on an annual basis with an accompanying 21% increase in the scale of capital being raised. At the same time, given the typical share of EU investments held in Guernsey funds, the GFSC submission forecast that there would be a 27% increase in investment into EU assets generally and a 40% increase in investment into infrastructure assets over five years through Guernsey-based funds, as a result of a passport being granted.
In ESMA’s 2nd assessment of the application of the 3rd country AIFMD passport published in July, Guernsey and Jersey once again were given unqualified positive assessments and ESMA confirmed that there were no obstacles to the application of the AIFMD passport to the Channel Islands. ESMA’s advice was required to inform the European Commission decision to adopt the third country delegated act as per Article 67 (6) of the AIFMD. When adopted, the delegated act will then be scrutinised by the European Parliament and Council.