JERSEY Law and Practice Contributed by: Nienke Malan and Christopher Griffin, Carey Olsen
activity includes dealing in, managing, under - writing or giving advice on investments. • 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 such investors and they are able to bear the economic consequences of the investment. • No need for Jersey directors or service providers, but a local administrator must be appointed to provide the registered office for any fund company. • May be listed, provided that the stock exchange allows restrictions on transfers (such that only Eligible Investors may invest). • There is no audit requirement (unless the fund is a company) and no investment or borrow - ing restrictions. • No limitation on the number of investors. Please refer to 3. Retail Funds for details of Jer- sey regulatory classifications which are suitable for retail funds. Investment Vehicles Which Are Not Funds An investment vehicle will not be regulated as a fund in Jersey unless it is a scheme or arrange - ment for the investment of capital: • which has as its object or one of its objects the collective investment of capital; and • which operates on the principle of risk spreading, or where units are to be bought back or redeemed continuously or in blocks at short intervals upon the request of the holder and out of the assets of the fund, or where units will be issued continuously or in blocks at short intervals. Joint ventures, single asset vehicles, single investor vehicles or vehicles which carry on a business (such as property development) also
generally fall outside Jersey’s funds regulatory regime. The Application Process As a first step, personal questionnaires should be submitted to the JFSC in respect of: • each director of a corporate Regulated Fund or corporate JPF which is not a sub-threshold AIFM; and • the directors and 10%-plus beneficial owners of any Jersey service provider to a Regulated Fund which is seeking an FSB Licence. These should be submitted in advance of the fund application, as the JFSC’s regulatory checks typically take four to six weeks where the proposed director is not already known to them. The requirement for personal question - naires does not apply to JPFs unless marketed into the EU/EEA and not sub-threshold. JPFs are subject to a fast-track process whereby the JPF’s proposed DSP makes an application via the JFSC’s online portal. In respect of a Regulated Fund, a formal applica - tion to the JFSC would follow, enclosing (among other things) the fund’s offering document and the relevant JFSC application forms. The cost of the application will vary according to the number of pools of assets (if the fund is an umbrella fund) and the fund’s intended Jersey service provid - ers. Core Documents The core documents for a Jersey fund are as follows: • offering document (not required for a JPF or a Notification-Only Fund);
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