Private funds to benefit from streamlining

From 18 April 2017 Jersey will implement a new Jersey Private Fund (JPF) regime that will essentially streamline two previous regimes into a single, more effective, solution for clients.

Previously, private funds in Jersey fell into either the Very Private Fund or Private Placement Fund regime. The JPF will take the popular features of the Very Private Fund regime, such as the 48 hour regulatory turnaround, no private placement memorandum requirement and structural flexibility and allow more funds to be created using these parameters. Now any Jersey private fund vehicle can become a JPF. In fact, any non-Jersey limited partnership can also become a JPF if it has a relevant connection to the island.

The move has been welcomed by fund professionals as it will expand the application of the Very Private Fund regime so that many more privately-placed funds can benefit from a flexible, efficient and swift regulatory process.

The new regime will complement Jersey's non-EU focused Unregulated Fund regime and the Expert Fund regime for funds where offers are made to more than 50 expert investors. It will also soon be joined in Jersey’s proposition by the manager-led Jersey Registered Alternative Investment Fund regime.

Jersey Private Fund regime – a brief look:

Key features:
  • Professional or eligible investors only
  • 48 hour turnaround
  • Maximum 50 investors
  • Any investment vehicle can be used
  • Can be closed or open-ended, but not listed
  • A JPF must appoint a Jersey-based service provider to liaise with the Jersey Financial Services Commission (JFSC)
  • The JPF’s administrator will manage anti-money laundering obligations
  • JPF promoters do not need approval from the JFSC
The Process:
  • The Jersey-based designated service provider will apply to the JFSC
  • The application should contain the name of the JPF and any service providers involved
  • The designated service provider will also inform the JFSC if an auditor is appointed
  • The designated service provider will also confirm that all investors are professional or eligible
  • The designated service provider will complete CDD checks and AML compliance
The Fees:
  • A fee of £1,070 will be payable to the JFSC for the establishment of a JPF
  • An annual fee of £500 will also be due
In summary the JFSC’s new JPF regime will give Jersey a renewed focus on fund launches, with a fast-track regulatory authorisation process for the establishment of private investment funds.
Moore Stephens Fund Services can act as the required service provider. For more information please contact Nicholas Solt or Robert Luetkehaus. A summary can be viewed on the JFSC website here.
 

Moore Stephens Fund Services is a registered business name of MS Fund Services (Jersey) Limited. Regulated by the Jersey Financial Services Commission.