Jersey’s competitiveness as a jurisdiction in which to establish funds has been enhanced with the introduction of a new regulatory framework for private funds.
The Jersey Private Fund, which has been announced by the Jersey Finance Services Commission today (Tuesday 15 March), consolidates and streamlines Jersey’s private fund offering and will enable funds with up to 50 investors to take advantage of a fast-track authorisation process and lighter ongoing regulatory requirements.
It provides a more flexible and versatile framework which will further improve the speed and ease with which funds marketed to professional investors can be established. The framework ensures continued compliance with international standards by requiring the appointment of a Jersey-based administrator.
Geoff Cook, CEO, Jersey Finance, said: "Jersey’s funds industry has shown strong growth over the past five years, and the new regime positions us for continued growth. Our industry is built on speed to market and expertise combined with appropriate regulatory oversight, and by offering a 48-hour authorisation for funds with up to 50 investors, this product will further cement our position as a market leader."
The Jersey Private Fund will also be available to managers seeking to market funds into Europe through National Private Placement Regimes. This is a route which has been a strong growth area for Jersey’s funds industry, and there are now more than 250 alternative investment funds* and 115 authorised alternative investment fund managers* marketing into the EU via Jersey.
The Jersey Private Fund regime will operate alongside existing regulatory frameworks which collectively will meet the requirements of all managers and investors.
Mike Byrne, Chair of Jersey Funds Association, said: “As a forward-thinking jurisdiction providing bespoke alternative fund solutions, we recognise that we need to continue to innovate and enhance our funds environment to set us apart from other jurisdictions. The new Jersey Private Fund is an example of that and comes following significant engagement between industry, regulator and government, aimed at making our overall funds offering clearer and simpler whilst at the same time giving fund managers and investors greater choice. We anticipate the regime will find real appeal amongst our institutional and professional investor client base, right across the private equity, real estate, infrastructure and debt and credit fund asset classes.”
Further information about the Jersey Private Fund is available on the Jersey Financial Services Commission website.
* Figures correct in December 2016