JERSEY Law and Practice Contributed by: Nienke Malan and Christopher Griffin, Carey Olsen
2.3.11 Approach of the Regulator The JFSC takes a pragmatic and co-operative approach, and Carey Olsen works closely with the JFSC’s Authorisations team to resolve any regulatory questions or issues as and when they arise during a fund application. The JFSC gener - ally publishes guidance whenever it issues a new policy, and tends to be punctual in processing applications, particularly where a degree of com - mercial urgency is involved. 2.4 Operational Requirements Any restrictions are mostly contained in the rel - evant JFSC Guide, although the JFSC’s Sound Business Practice Policy also sets out principles regarding the activities that the JFSC considers sensitive from a reputation perspective (which includes, for example, investments in certain goods or services which require payment in advance and pose a risk of fraud, or in weapons, mining or certain crypto-assets). Please refer to 2.1.2 Common Process for Set- ting Up Investment Funds for details of invest- ment restrictions and any specific requirements relating to the custodian. As mentioned, Jersey service providers to Regu - lated Funds are required to be licensed under the FSJL, which provides for matters such as insider dealing, market manipulation and the provision of misleading information to persons for the purpose of inducing them to enter into an agreement, the performance of which may constitute financial services business under the FSJL. 2.5 Fund Finance Access to Fund Finance There are generally no restrictions in this regard (please refer to Borrowing Restrictions/Require- ments , regarding borrowings).
its prior consent; these include any change of fund service provider and any changes to the fund that are not in accordance with the appli - cable JFSC Guide. The JFSC Guides relating to funds which target retail investors naturally con - tain more stringent structural and other restric - tions than those aimed at sophisticated or expert investors, for investor protection reasons. In respect of Regulated Funds, the following must be provided to the JFSC: • the audited financial statements of the fund; and • any interim report and accounts of the fund that may be prepared and provided to inves - tors. In respect of JPFs, the regulated DSP is required to complete and submit a JPF annual compli - ance return with the JFSC in each relevant year. In addition, the DSP must submit a notice of change or event to the JFSC in the event of any: • material change in relation to the JPF which would impact on the accuracy of the informa - tion provided to the JFSC in the JPF appli - cation (including the termination of the JPF (under any circumstances) or any change to the JPF’s Jersey service provider(s) other than the DSP (on the basis that there shall be no change in the DSP without the prior approval of an officer of the JFSC)); • non-compliance with the JPF’s Jersey AML/ CFT obligations; • material/unresolved complaint(s) made in relation to the JPF; or • qualified audit of the JPF’s annual accounts and financial statements (where the JPF has appointed an auditor).
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