Jersey splits its AIF code to maintain EU market access
Why the split?
Jersey operates a dual alternative investment fund manager (AIFM) regime that complies with both the EU AIFMD and the UK AIFM Regulations, underpinning its ability to access both markets through Private Placement Rules. When the EU updated its directive in April 2024 through EU AIFMD II, with a mandatory implementation deadline of April 2026, Jersey needed to adapt accordingly.
However, the EU and UK regimes are now diverging. The EU's reforms have been finalised, while the UK's revised approach remains under development. A single code could no longer serve both purposes, so the JFSC opted to split it rather than delay compliance with the EU deadline.
What has changed in practice
The JFSC has noted that the practical impact on most Jersey businesses is minimal. Most of the changes apply to full passport AIFs and AIFMs and do not affect the national private placement regime, which is the mechanism through which Jersey retains its third-country market access.
Updated guidance and frequently asked questions have been published alongside the revised code.
The consultation process
The JFSC's October 2025 consultation paper received one response. The respondent confirmed that the impact of the proposed changes on Jersey businesses was not considered material, and no substantive objections were raised. In the absence of material comments, the JFSC confirmed it would proceed as proposed.
What comes next
A UK-focussed AIF Code will be introduced once the UK's new approach to AIFs and AIFMs is fully developed. In the interim, the existing AIF Code continues to apply for UK regime purposes. The JFSC has also confirmed that a new EU Annex IV reporting template is expected to be made available in 2027.
The JFSC will continue to monitor developments in both the UK and EU that are relevant to AIFMs. Stakeholders with queries may contact the JFSC's Policy team at policy@jerseyfsc.org.
Updated Alternative Investment Funds Code of Practice, guidance and FAQs can be found here.
The feedback on the consultation for the changes to the alternative investment fund code to transpose the EU’s Alternative Investment Fund Managers Directive II can be accessed here.
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