Funds

The funds sector, alongside banking and trust services, represents one of the three key pillars which underpin Jersey’s success as an International Finance Centre. It is valued at over £240 billion, an indication that this business has not grown in the Island overnight. In fact Jersey has been a prominent player in delivering fund services since the 1960s.

The emphasis today has since shifted towards funds for institutional, specialist and expert investors. This is seen as the biggest area for growth in the ever expanding fund management business. In particular, alternative investments have become increasingly popular as a way of reducing the volatility in investment markets and Jersey has attracted a significant number of venture capital, private equity, mezzanine, real estate and hedge funds.

The introduction of the Expert Fund Guide in 2004, which streamlined the approval process for many specialist funds, enabled the Island to compete effectively for  hedge fund, private equity and other specialist funds business alongside other  comparable centres. Jersey has since extended the streamlined approval process for permits for functionaries of certain non-Jersey domiciled funds and introduced a  fast track process for closed ended collective investment funds listed on recognised exchanges. Following the signing of a regulatory agreement, certain Jersey funds can be listed on Euronext without the need to apply for authorisation each time.

Ever evolving, the regulatory emphasis is now on the functionary rather than the individual fund product. In addition, the Unregulated Fund Regime was introduced in early 2008 to sit alongside Jersey’s existing regulated products.