JERSEY Law and Practice Contributed by: Nienke Malan and Christopher Griffin, Carey Olsen
• a manager with a trading record of at least five years or whose principal persons can demonstrate relevant experience or qualifica - tions. If an investment manager/adviser does not meet these requirements, it may approach the JFSC on a case-by-case basis. Of course, if permis - sion is granted, in the absence of any material change, the investment manager/adviser will not need specific approval to establish further Listed Funds. An investment manager/adviser is not required for certain self-managed funds, such as direct real estate or feeder funds. Eligible Investor Funds The structural, authorisation and ongoing regula - tory requirements of the Jersey Eligible Investor Fund is similar to those for the Expert Fund, save that there is a higher threshold for qualifying as an “Eligible Investor” than as an “Expert Inves - tor”. Like the Expert Fund, the Eligible Investor Fund is used for non-retail schemes (including hedge funds, private equity funds and other schemes aimed at Eligible Investors) and can be established quickly and cost-effectively. The following applies for this type of fund. • Must be an AIF and marketed into at least one EU/EEA country for the purposes of the AIFMD. • Eligible Investors only. This falls under any one of 11 categories, including an investor of USD1 million or more, investors with a net worth of more than USD10 million (excluding their principal place of residence), and those whose ordinary business or professional activity includes dealing in, managing, under - writing or giving advice on investments (same as for Notification-Only Funds, below).
• Reduced requirements apply to the fund’s offering document, given the sophisticated nature of investors in such funds. • Open or closed for redemptions by investors. • The regime expressly recognises that a discretionary investment manager may make investments on behalf of investors who do not qualify as Eligible Investors, provided it is satisfied that the investment is suitable for the underlying investors and they are able to bear the economic consequences of the invest - ment. • The fund may be marketed into the EU/EEA in accordance with the AIFMD through NPPRs (and, when available, third-country passport - ing). Notification-Only Funds This fund is highly flexible and is a low-cost structure ideal for sophisticated investors where the fund will not be marketed into the EU/EEA. A Notification-Only Fund may be open/closed- ended and is restricted to sophisticated inves - tors. The JFSC Guides do not apply to Noti - fication-Only Funds. The key benefits of this regime for fund promoters are that it provides unparalleled flexibility coupled with the certainty of being able to establish the fund at any time, simply by filing the required notice and without • No need for JFSC approval and no ongoing regulation, established on a “notification- only” basis. • Eligible Investors only. This falls under any one of 11 categories, including an investor of USD1 million or more, investors with a net worth of more than USD10 million (excluding their principal place of residence), and those whose ordinary business or professional the need to obtain JFSC approval. The key features are as follows.
324 CHAMBERS.COM
Powered by FlippingBook