JERSEY Law and Practice Contributed by: Nienke Malan and Christopher Griffin, Carey Olsen
Recognised Funds Recognised Funds are rarely established in Jer - sey, and a number of prescriptive rules apply to them. This category of fund is intended to be freely marketable to retail investors in the UK and elsewhere. Given the rarity of Recognised Funds in Jersey, this regulatory category is not considered further in this section, which focuses on OCIFs. 3.1.3 Limited Liability Please refer to 2.1.3 Limited Liability . 3.1.4 Disclosure Requirements Please refer to 2.1.4 Disclosure Requirements . The fund documents should be carefully checked against the OCIF Guide to ensure compliance with the various requirements set out therein (which cover, among other things, the matters referred to in 3.4 Operational Requirements ). Various investor reporting requirements are also contained in the OCIF Guide, including that at least two reports must be published and sent to investors each year. Investors must be notified of all changes to the fund’s constitutive docu - ments, unless the trustee or custodian certifies that in its opinion the changes will not prejudice investors’ interests and files that certification with the JFSC. The latest available selling and redemption pric - es or net asset value must be available to all investors. 3.2 Fund Investment 3.2.1 Types of Investors in Retail Funds The market in Jersey generally targets sophisti - cated investors who fall into the institutional or high net worth categories (in the authors’ experi -
Under the JFSC’s Guide for Open-Ended Col - lective Investment Funds (the “OCIF Guide”), in assessing a proposed promoter or promoting group, the JFSC will have regard to its: • track record and relevant experience; • reputation; • financial resources; and • spread of ultimate ownership. Their assessment will depend on the type of investor to which the proposed fund is targeted: the higher the minimum investment and/ or the more that the fund is targeted towards profes - sional or institutional investors who have knowl- edge of the industry and have the experience and resources to look after themselves, the more the JFSC is inclined to relax its requirements. OCIFs Funds which do not fall into any of the regula - tory classifications referred to in 2.1.2 Common Process for Setting Up Investment Funds and which may be offered to retail investors (OCIFs) can be established under the OCIF Guide. This is a more heavily regulated category of fund, which contains additional investor protections, such as: • criteria applicable to the promoter; • investment restrictions (which vary according to the fund type – for example, special rules apply to feeder funds and funds of funds); and • a requirement for the JFSC to approve all the material fund documentation. Derogations may be sought from the OCIF Guide, but the JFSC will have regard to mat - ters such as minimum investment when deciding whether to grant these.
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