Guernsey funds have been reopened to millions of euros of potential investment as a result of the confirmation from the European Council of Finance Ministers (ECOFIN) that the island is considered a transparent and cooperative jurisdiction by the European Union.
Confirmation of the island’s legal substance requirements, confirmed earlier this month, has meant that the European Investment Fund is prepared to reinvest into Guernsey funds.
The European Investment Fund is a specialist provider of risk finance for small and medium-sized enterprises across Europe, backed by the European Investment Bank, European Union, and a range of public and private banks and finance institutions. It has just published new policy on its operations following the ECOFIN ruling.
The Channel Islands Brussels Office (CIBO) has confirmed that there should now be no impediment to private equity firms in the islands conducting business as usual with the EIF, which has invested into Guernsey funds previously as part of 147 billion euros invested across Europe.
The move will be welcomed by the Guernsey funds industry.
“This is great news for Guernsey and a validation of all the work put in over the past couple of years to ensure that Guernsey has been recognised by the EU as a jurisdiction of real substance. It demonstrates once again that we are seen as a quality jurisdiction with robust regulation,” says Dominic Wheatley, Chief Executive of Guernsey Finance.
Further talks are expected between EIF and CIBO where CIBO will seek greater detail.
