FUNDS business is picking up across the funds industry and in Guernsey, according to some leading players in the sector.
The global industry's reaction to Guernsey's stance on the Alternative Investment Fund Managers Directive could influence the way the local sector goes in years to come, according to Gerald Hough, managing director at State Street Global Services in the island.
He said that the improving economic environment in the UK and USA meant that funds which were unable to launch earlier in the year were now 'getting away successfully', which had a positive effect all round. Real estate and infrastructure funds were performing particularly strongly.
'Guernsey remains attractive to fund sponsors but we worry slightly that the demise of the Flybe Gatwick service will have a negative impact on location choice, with Jersey possibly reaping the benefit with its BA service,' said Mr Hough.
'We believe that Guernsey faces challenges with AIFMD, given that there are some European member countries that will not recognise the island for passport purposes in 2015.
'There is also a concern that now legislation is on the books it can be used to tighten the noose should EC member countries wish to make things more difficult for funds that wish to market to European investors.'
Mr Hough said that there was a more active interest from companies in both the AIFM directive and the Dodd Frank legislation in the US, which could also serve as positive for the islands.