Jersey private funds: a new regime28 Mar 2017
With effect from 18 April Jersey is introducing a new regime in respect of private funds - simplifying the regulatory regime, and extending the benefits of flexibility and speed across Jersey's private funds space.
Under the Jersey private funds regime:
- All funds with up to 50 investors will come under one simple regime.
- The regulatory framework will be consistent across the private funds space, extending the current benefits of Jersey's existing very private regime to all private funds.
- A fast track 48-hour regulatory approval process will apply, with no prior approval of promoters or key persons being required.
- The features and operation of private funds will be relatively unconstrained, with a variety of legal vehicles being able to be used, funds being able to be closed- or open-ended, requirements for Jersey connections being relaxed, and offering documents being permitted, but not required.
- Private funds will be able to be promoted to "professional" and other "eligible" investors, with the eligibility criteria being both straightforward and relatively broad: for example including those whose ordinary business is managing, holding or advising on investments, as well as persons who can meet certain asset or investment thresholds (such as making an investment of at least £250,000 (or currency equivalent)).
- Alongside the various elements of flexibility, appropriate regulatory oversight will be maintained. This will be achieved through a requirement for a Jersey-regulated 'Designated Service Provider' to be appointed to all Jersey private funds, following the trend of focusing regulation on a key service provider, rather than the product.
The objective is clear: a simplified and streamlined regime, allowing Jersey to compete in the fast-evolving international funds landscape, but with appropriate regulatory supervision being maintained.
Our fuller briefing on the new regime can be obtained here: please click