English and Scottish Limited Partnerships may elect to become Jersey AIFs

16 Jul 2015

The Alternative Investment Funds (Amendment of Regulations No.2) (Jersey) Order 2015 came into force this week, as a result of which English and Scottish limited partnerships may, subject to certain conditions, now elect to be regulated in Jersey as Jersey AIFs

This means that such limited partnerships may be treated as "non-EU AIFs" for the purposes of the AIFMD by virtue of being authorised in Jersey by the Jersey Financial Services Commission.

Until now, it has not been possible under Jersey legislation for foreign limited partnerships to elect to be regulated in Jersey as Jersey AIFs. As a result, we have seen examples of English and Scottish limited partnerships with a Jersey general partner which are not treated as UK AIFs by the UK Financial Services Authority, but nor are they treated as Jersey AIFs by the JFSC.

The Order could remove the EU AIF/non-EU AIF uncertainty for English and Scottish limited partnerships which are not treated as UK AIFs by the FCA because they are not authorised or registered in the UK.

In order to be eligible to make the election, the relevant limited partnership must:

- be registered in England or Scotland under the Limited Partnerships Act 1907 (c.24) of the United Kingdom;

- have a governing body which is-
•    a Jersey company,
•    a limited partnership, an incorporated limited partnership or a separate limited partnership whose general partner is a Jersey company, or
•    a limited liability partnership at least one of the partners of which is a Jersey company;

- not have a registered office, head office or principal place of business outside Jersey; and

- keep a register of limited partners or a duplicate copy of the register at the registered office or head office of the governing body in Jersey.