GUERNSEY is in a strong position to achieve the equivalence status it is after in relation to the alternative investment fund managers directive, according to the Commerce and Employment Department.

The controversial EU directive, which is still having the finishing touches put to it, looks to provide a regulatory framework for hedge funds, private equity firms and other alternative investment vehicles, but has been faced with more than 1,000 amendments as different governments and countries look to influence the final outcome.

One of the biggest areas of discontent has been the issue relating to ‘third-party’ provisions and how in its original format the directive could result in EU investors being prevented from accessing non-EU funds and managers, and vice-versa.

If the directive were passed in an unfavourable form it could damage Guernsey’s fund industry and put around 2,500 jobs and tens of millions in tax revenue at risk. However, a spokesman for the Commerce and Employment Department was confident Guernsey would gain access to a ‘passport’ and be considered an equivalent jurisdiction – an issue also facing other countries, including the US.

Treasury minister Charles Parkinson (pictured) is among those confident that Guernsey will retain its access to the EU.

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