Funds lawyer warns over Brexit impact

BREXIT is having a negative impact on the local funds industry, a leading lawyer has said.

GavinFarrell
Gavin Farrell, partner at Ferbrache & Farrell, said the UK referendum vote had impacted the island’s opportunity to secure a passport under the EU’s Alternative Investment Fund Managers Directive.

Gavin Farrell, partner at new law firm Ferbrache and Farrell, and one of the island’s top funds lawyers, said that the island was finding it harder to attract new funds business over the past few months.

European regulations were making fund managers and promoters think harder about where they want funds to be domiciled and promoted, he said, and he was sure that the Brexit referendum vote had impacted the island’s opportunity to secure a passport under the EU’s Alternative Investment Fund Managers Directive.

Within a month of the UK referendum, Guernsey had received a positive assessment from the European funds regulator Esma, and it was expected that the passport would be issued shortly thereafter.

It still has not been, and although that has allowed ‘business as usual’, Mr Farrell said it was far from ideal.

‘Brexit is highly political in Europe,’ said Mr Farrell.

‘I think had Brexit happened two months later most probably we would have got the passport. I don’t think it would have been pushed back into the long grass to the same extent it has, and now the European Commission has bigger fish to fry. I think we would have had a far easier ride without Brexit.’

Mr Farrell said that the local industry was having to work much harder for business as promoters started to look at alternative domiciles for funds, for a variety of reasons. The local industry has long held concerns that the European regulatory environment for funds was becoming more challenging and competitive.

Comments for: "Funds lawyer warns over Brexit impact"

100% Donkey

I've been dreading news like this for months. In his assessment, Gavin is being very conservative and given he has a vested interest, understandably so. To expect the EU to issue an AIFMD passport after Brexit was optimistic to say the least. If the City is struggling to obtain EU Passporting rights, the Channel Islands are going to struggle BIG TIME.

People come on these forums telling me higher house prices are bad for the economy, they moan about exporting rubbish and in the meanwhile.....

Passporting - remember that word people, because you are going to hear a lot more of it in the next two years and the consequences could be dire.

GSYcow

Add the Population Management Law on top of this and its negative impact on all areas of our economy and watch HMS Guernsey hit an Iceberg in APRIL. What you see on top and what is reported here and elsewhere is only a fraction of the unreported consequences under the waterline. Business leaders and more especially individuals need to write to their Deputies expressing their extreme concerns. Don't leave it to the next man to do it as it effects all of us.

Don Tramp

It is a pity he didnt warn us about the abolition of reasonable cause for U/EU Govts to fish around into bank accounts. Brexit is the least of our concerns.

100% Donkey

Don

The only fish the UK/EU would find in bank accounts is tax evasion.

Guernsey has always prided itself on being a very compliant and well regulated jurisdiction, but if we lose Passporting rights the bank accounts won't be here !!

Don Tramp

So you think abolishing Court Orders based on reasonable cause is a good thing and not responsible for our Island going bankrupt ?

Tax evasion is an interested subject particularly as those in charge pay very little and yet they are generally the ones encouraging the abolition of innocent until proven guilty for the rest of us.

Loveridge

It seems certain that the U.K. can kiss goodbye to the access they've previously enjoyed. April will surely see some of the big names carrying out major restructuring. Meanwhile SOG will continue to nod, smile and bring about a new housing regime which will make life even more difficult for the parts of the economy not about to get hammered by the fallout from Brexit.

markB

I'm glad my Greenhouses are still in good shape, they may come in handy again, even just to feed the family!!