JERSEY Law and Practice Contributed by: Nienke Malan and Christopher Griffin, Carey Olsen
• no requirement for Jersey directors or ser - vice-providers and no audit requirement; • for a Jersey AIFM, a simple JFSC consent is required (there is no ongoing regulation); and • minimal requirements will apply under the AIF Code. The following applies for establishing a JPF with EU/EEA marketing (where the Jersey AIFM is not sub-threshold). • Ten-day regulatory approval for an AIF cer - tificate, plus JFSC personal questionnaire review process (four to six weeks) for direc - tors and 10% beneficial owners of the Jersey AIFM (if applicable). • Two Jersey directors required. • Where the AIFM is a Jersey entity (such as a general partner, trustee or external manager), it must obtain a licence under the JFSC’s AIFMD regime. • An “AIF Certificate” is needed to permit EU/ EEA marketing. Ongoing JFSC regulation is limited to compliance with the limited applica - ble AIFMD provisions. • The JFSC assesses the suitability of the fund’s promoter having regard to its track record and relevant experience, reputation, financial resources and spread of ultimate ownership, in light of the level of sophistica - tion of the target investor group. • Audit and certain regulatory and investor dis - closure requirements will also apply. • No ongoing regulation (except limited appli - cable AIFMD rules). Regulated Public Funds Public funds are governed by Jersey’s collective investment funds law and are suitable for funds with more than 50 investors or where a regu - lated product is needed. They include Expert Funds, Listed Funds and Eligible Investor Funds
(each, a “Regulated Fund”). The JFSC has pub - lished a Code of Practice which includes guides (together, the “JFSC Guides”) in relation to Jer - sey Regulated Funds, setting out the structural and ongoing requirements applicable to the rel - evant fund type. The key features of a Regulated Fund are as fol - lows: • published three-day approval timeframe fol - lowing completed application (ten days for a new “special purpose” service provider company); • no investment or borrowing restrictions; • suitable for EU/EEA marketing; • unlimited number of investors; • relatively light-touch regulatory approach; • audit requirement; • the offer document must comply with certain content requirements (please see 2.1.4 Dis- closure Requirements ) and investors must sign a prescribed investment warning; and • derogations from the relevant JFSC Guide may be sought on a case-by-case basis. Jersey service providers to a Regulated Fund will need to hold a licence to conduct the rel - evant class(es) of fund services business (“FSB Licence”). Accordingly, if any SPV service pro - viders, such as a general partner or manager, will be established to act for the fund, an FSB Licence will need to be sought for each such entity. Such service providers are also required to comply with the Code of Practice issued by the JFSC that covers fund services businesses and AIFs (including their AIFMs and depositar - ies, where these are Jersey entities). Expert Funds The Expert Fund is attractive for non-retail schemes, whether hedge funds, private equity
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