JERSEY Law and Practice Contributed by: Nienke Malan and Christopher Griffin, Carey Olsen
• the Collective Investment Funds (Certified Funds – Prospectuses) (Jersey) Order 2012 (unless the fund is an Eligible Investor Fund); • the relevant JFSC Guide; and • if the fund is an AIF which is not sub-thresh - old, the AIF Code. Investors should also be notified of any mate - rial changes which may affect their investment. Additional reporting requirements apply in the case of retail funds (please refer to 3.1.4 Disclo- sure Requirements ). Finally, the JFSC Guides set out details of mat - ters which need to be notified to the JFSC or which require its prior consent. Public Companies A fund which is a public company (of any regula - tory classification) must file and send to inves - tors annual audited financial statements, and Regulated Funds must file audited accounts with the JFSC. 2.2 Fund Investment 2.2.1 Types of Investors in Alternative Funds Jersey’s alternative funds attract a sophisticated investor base, predominantly comprising insti - tutional investors, high net worth individuals and family offices. The island’s stable regula - tory environment and tax neutrality make it par - ticularly appealing for these discerning investor categories. 2.2.2 Legal Structures Used by Fund Managers Fund managers and/or investment advisers of alternative investment funds are commonly established in Jersey as companies or limited partnerships, providing them with the flexibility and governance structure conducive to fund management activities.
Where a special purpose Jersey entity needs to be regulated to be appointed as manager or adviser (for example, where acting as AIFM to a JPF which is not sub-threshold or for a Regu - lated Fund), a simplified licensing regime applies under the JFSC’s “managed entity” regime. The key features of this regime are as follows. • The entity must be administered by a regu - lated Jersey administrator, which assumes responsibility for ongoing regulatory compli - ance and often provides one or more direc - tors. • There is no minimum regulatory capital requirement, but the entity should have such financial resources as are, in the opinion of the directors, sufficient to meet commitments. • Each director of the entity (and each of its beneficial owners with a 10% or greater inter - est) is required to submit a personal ques - tionnaire and obtain approval from the JFSC. As international regulatory checks often take three weeks or more to complete for individu - als who have not already been approved by the JFSC, these should be completed and submitted as early as possible. • Registration under the FSJL typically takes two weeks (if, as is usual, personal question - naires are filed in advance). 2.2.3 Restrictions on Investors The investor eligibility requirements for each type of fund are summarised below. JPFs Each investor in a JPF must be a person who invests at least GBP250,000 (or currency equiv - alent) or qualifies as a “Professional Investor”. A Professional Investor includes: • a natural or legal person, partnership, trust or other unincorporated association whose
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