The Jersey Financial Services Commission (“JFSC”) announced a new Jersey Private Fund regime (“Jersey Private Fund”), effective from Tuesday 18 April 2017.
The introduction of the Jersey Private Fund shall replace the Very Private Funds, Private Placement Funds and COBO Only Funds and once in established, new applications under the older regimes will not be possible.
Existing private funds under the old regimes will be able to continue to operate as such until the end of their natural life or convert to the new Jersey Private Fund regime, provided key requirements are met.
A Jersey Private Fund:
- requires a consent to be issued by the JFSC and may be marketed to 50 or fewer “professionals” or eligible investors (those with a minimum investment value of £250,000);
- has no requirements for promoter policy/approval;
- has no requirement for Jersey-resident directors;
- has no requirement for an offering document;
- possesses no set restrictions on investment and borrowing, but there is a requirement for investment warning and disclosure statement;
- can be open-ended or closed-ended;
- has no requirement for audited accounts, but any qualified audit must be reported (except in the circumstances when adopting modified GAAP);
- must appoint a designated service provider (“DSP”), which is registered pursuant to the Financial Services (Jersey) Law 1998;
- must have any notice of change or event signed off by the DSP;
- must have annual Jersey Private Fund return signed off by the DSP; and
- does not require personal questionnaires in relation to the Jersey Private Fund itself.
Approval Timings and Cost
Funds qualifying under the Jersey Private Fund regime will receive approval within 48 hours from when the application has been received.
A one-off application fee of £1,070 is payable, followed by an annual fee of £500.