Feedback on changes to the alternative investment fund code to transpose the EU's Alternative Investment Fund Managers Directive II

Summary

This is a JFSC feedback paper responding to its October 2025 consultation on changes to the Code of Practice for Alternative Investment Funds and AIF Services Business (AIF Code) to transpose the EU's AIFMD II. Only one response was received, and the JFSC concludes it will proceed with the originally proposed changes largely unchanged, splitting the AIF Code into a separate EU AIF Code (aligned with EU AIFMD II) and a future UK AIF Code (once UK AIFM reforms are finalised).

• Rationale: Jersey operates a dual AIFM regime to preserve equivalence and market access under EU and UK private placement rules; EU AIFMD II must be reflected in Jersey's regime to maintain EU market access.
• Approach: The AIF Code will be split into an EU AIF Code (implementing EU AIFMD II requirements by 16 April 2026) and a UK AIF Code (to follow once the UK's AIFM reforms are settled).
• Consultation outcome: The single respondent found the proposals clear and expected only minor business impact; the JFSC will proceed with the proposals as consulted.
• Third country provisions: The JFSC has not transposed EU AIFMD II's third-country requirements into the AIF Code, but industry should stay aware of EU lists of high-risk and non-cooperative jurisdictions.
• Other suggestions noted: A respondent's suggestions on a minimum span of control requirement for standalone AIF services businesses and clearer wording on audited financial statements were not part of this update but will be considered as part of future UK AIFM regime work.

No new substantive obligations are set out in this feedback paper itself beyond confirming the timeline and structure for the EU AIF Code changes; affected firms should watch for the finalised EU AIF Code taking effect by 16 April 2026 and for a subsequent UK AIF Code once UK reforms are confirmed.

Applies to

alternative investment fund managers (AIFMs), alternative investment fund services businesses, Jersey depositaries, alternative investment funds (AIFs)

Deadlines

• 16 April 2026: Deadline by which the EU AIF Code (reflecting EU AIFMD II requirements) must be implemented to maintain Jersey's EU market access