Jersey is not, and never has been, a member state of the EU or the EEA. However, Jersey funds can still be marketed to European investors using individual member states’ national private placement regimes (“NPPRs“). This is a well-trodden path for our clients with Jersey fund structures, as for Cayman.
AIFMD II became operational in EU member states on 16 April 2026 and, in response, the Jersey Financial Services Commission (“JFSC“) has published a revised version of the Alternative Investment Funds Code of Practice to reflect the changes made by AIFMD II.
AIFMD II itself does not have a material practical impact on most Jersey fund managers. The more significant changes (employee requirements, delegation rules and depositary location requirements) apply only to EU-based managers, meaning Jersey AIFMs continue to benefit from a lighter-touch regime.
However, the enhanced transparency and reporting requirements (which do apply to non-EU AIFMs) will flow through to Jersey AIFMs and have been reflected in the revised AIF Code. A new Annex IV reporting template is expected to be published by the JFSC in 2027.
It seems likely, following the publication of the UK FCA’s consultation paper in July this year, that the EU and UK AIFMD regimes will soon diverge and potentially quite significantly with (amongst other proposals) the introduction of a three-tier AIFM classification regime. In anticipation of this, the JFSC has also published a separate AIF Code which applies to Jersey funds that are marketed into the UK.
This split between an EU-facing AIF Code and a UK AIF Code positions Jersey to take account of the parallel development in their respective AIFMD regimes, ensuring that Jersey funds can continue to be marketed in Europe and the UK moving forward.
NPPRs remain an efficient and cost-effective route to market a fund into Europe where the target investors are located in a handful of member states. Most Jersey AIFs are marketed into three or fewer member states, and if a fund is to be marketed more widely throughout Europe then our colleagues in Ireland and Luxembourg are well-placed to assist with launching structures which benefit from the AIFMD marketing passport.
In reality, we most often see managers use a combination of structures, for example a Jersey or Cayman fund alongside a Luxembourg or Irish parallel vehicle. Maples has offices in each of those jurisdictions and can advise on the most suitable structure for your fundraising and distribution needs.
Please reach out if you have any questions on this topic or for general funds or regulatory compliance advice.
