The AIFMD has now been in force for over two months and funds and their advisers are coming to terms with the new AIFMD regime in Jersey. Some interesting themes that have been noted in this quarter include:

• The new AIF Codes contain provisions regarding the disclosure of side letters. This represents a departure from market practice in certain sectors (eg hedge funds). The JFSC has confirmed that it intends to issue formal guidance on the disclosure of investor side letter terms in due course. This should bring some welcome clarity for advisers.
• The JFSC has issued a consultation paper recommending that the pro-forma reporting template set out the Level 2 AIFMD Regulations be used for the purposes of preparing reports to the JFSC required under the AIF. The European Securities and Markets Authority has recently published the final guidelines on the reporting obligations for EU AIFMs, which may be of assistance for Jersey AIFMs when considering their reporting obligations to the JFSC.
• The Jersey Orders and Regulations incorporate transitional provisions for implementation of the Directive. Essentially, if a fund manager is able to avail of the transitional arrangements in its target markets in the EU, that manager and any Jersey funds it manages are exempt from the need to make any filings to the JFSC or to comply with any of the AIF orders or regulations.