JERSEY Law and Practice Contributed by: Nienke Malan and Christopher Griffin, Carey Olsen
ence, there is currently less investor appetite for Jersey retail funds than for non-retail options). 3.2.2 Legal Structures Used by Fund Managers Please refer to 2.1.1 Fund Structures . 3.2.3 Restrictions on Investors OCIFs are available to a broad range of potential investors, subject to any eligibility requirements provided for in the constitutive documents of the OCIF. 3.3 Regulatory Environment 3.3.1 Regulatory Regime The OCIF Guide contains a number of invest - ment and borrowing restrictions which vary according to the type of fund – for example, whether it is a general securities fund, a fund of funds or a feeder fund. However, this firm has successfully obtained derogations from certain investment restrictions set out in the OCIF Guide (noting that such derogations must be applied for on a case-by-case basis and are not avail - able in every instance). Where the OCIF is an umbrella fund, each of its sub-funds will be treated separately for the purposes of determining which restrictions will apply to that sub-fund. 3.3.2 Requirements for Non-Local Service Providers Please refer to 2.3.2 Local Regulatory Require- ments for Non-Local Service Providers . The OCIF Guide sets out specific requirements regarding service providers, such as the man - ager (see 3.3.3 Local Regulatory Requirements for Non-Local Managers ) and the trustee/custo - dian, which must be a company that is a mem - ber of a major banking or insurance group of
companies or, otherwise, an institution that is acceptable to the JFSC. The OCIF Guide also contains the requirement that certain service providers, including the man - ager/administrator and trustee or custodian, must be an appropriately licensed Jersey com - pany with staff and premises in Jersey. Again, it is possible to seek a derogation from such requirements. 3.3.3 Local Regulatory Requirements for Non- Local Managers Please refer to 2.3.3 Local Regulatory Require- ments for Non-Local Managers . A manager of an OCIF is required to be engaged primarily in the business of fund management, and to have sufficient financial resources at its disposal to enable it to conduct its business effectively and meet its liabilities; in particu - lar, it must be in compliance with the financial resource requirements of the relevant JFSC Code of Practice. As mentioned previously, the manager is required to be a company incorporated and resident in Jersey. It is not, however, essential for the man - ager to have staff and premises on the island if a Jersey incorporated company which does have staff and premises on the island is appointed as administrator. 3.3.4 Regulatory Approval Process Retail funds are more heavily regulated in Jersey, and this is reflected in the time it typically takes to obtain regulatory approval in relation to them. There is a two-stage JFSC review process, and an application generally takes a matter of weeks to process.
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