Low tax rates make the islands a haven for hedge funds, private equity firms and banks but as they are not members of the European Union, there are fears that the new directive on Alternative Investment Fund Managers (AIFMs) could Jersey and Guernsey-based firms from selling their funds into Europe.
As a result, the Channel Islands â which are traditionally politically represented by the UK - are setting up a diplomatic mission in Brussels in September, reports Reuters.
Terry Le Sueur, chief minister of Jersey, said: "It's an indication of a step towards greater autonomy.
"The Channel Islands are becoming increasingly mature and capable of looking after themselves and running their own operations."
In the AIFM directive, it is proposed that access to the European market for third country funds is only granted after a transitional period of three years.
By Tony Aynsley