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Vistra Fund Services (Guernsey) Limited hosted the latest Women’s Business Network event at Christies private dining room yesterday. The Women’s Business Network is targeted at women in senior positions in financial services in Guernsey.
Attendees heard from Guernsey Finance Chairman, Lyndon Trott, who also serves as Policy & Resources Vice President, on the potential impact of Brexit for Guernsey - a theme which couldn’t have been timelier as simultaneously voters in the UK took to the polls on whether the UK should remain a member of the EU.
Today in the wake of the UK’s, somewhat surprising, decision to leave the EU, Vistra Fund Services (Guernsey) Limited Managing Director Patricia White said: “The fund industry as a whole has been impacted recently by market uncertainty regarding the outcome of the vote and in light of the result this will probably continue for some time.
“Guernsey’s position as a third country with regard to the AIFMD regime, which impacts the ability for funds to be marketed in Europe, should not be affected and Guernsey will continue to offer a dual regulatory regime so that it is possible to distribute Guernsey funds into both the EU, through the national private placement regime for as long as it is in place, and non-EU countries. There is no reason to believe that the European Securities and Markets Authority’s (ESMA) opinion that Guernsey will qualify for full passporting as and when that regime is implemented at a European level for third countries will change, using an alternate member state of reference to the UK. So in this regard, for the foreseeable future for us it is business as usual.
“As the reality of the momentous decision of the UK vote, in favour of Brexit in the EU referendum, became clear the pound plunged to a 30-year low setting a new record swing between its high and low points, and the FTSE 100 futures slumped. Together with David Cameron’s decision to stand down as Prime Minister we inevitably have entered an extended period of political uncertainty and market volatility. Furthermore, Scotland’s backing to remain in the EU raises a threat of a second independence vote. The vote to leave the EU has sent shockwaves across Europe and triggered financial market turmoil across the globe. Sterling had actually surged in the final hours of yesterday’s session, as opinion polls indicated the vote to remain was ahead.
“In practice the decision to leave the EU will take a number of years to take effect and Guernsey is well placed to ensure that any impact is minimised. Our relationship with the UK will continue as before and is not impacted. Guernsey, whilst within Europe is not part of the EU, and is governed by its Protocol 3 relationship with the EU. This will need to be renegotiated when the UK leaves the EU but for most purposes the islands are treated as third countries and outside of the EU. Guernsey is not seeking to change its formal relationship with the EU, it is a third country and this position will continue.”
