Fund Structures In Jersey

Very Private Structures

  • For a small number of co-investors (up to 15)
  • For single purpose investments
  • Regulated under the Control of Borrowing (Jersey) Order 1958 ("COBO Order")
  • Short establishment time
  • Suitable for single investor vehicles, joint ventures and co-investment structures

COBO-only/Private Placement Funds

  • Not more than 50 investors and not listed
  • Falls outside of collective investment fund regulation
  • JFSC review promoter of the scheme and private placement memorandum
  • Ongoing regulation through compliance with conditions in COBO Order consent
  • Promoter track record, experience and reputation, as well as spread of ownership and financial resources
  • For professional investors or for investment in excess of £250 000 and acknowledging investment warnings
  • Wide flexibility

Unregulated Funds

  • Exempt from regulation if scheme is established as either:
    • those that can invest at least USD 1 million
    • unregulated exchange-traded fund
    • unregulated eligible investor fund
  • Eligible investors are:
    • those that can invest at least USD 1 million
    • institutional investors
    • professional investors as defined in the relevant order
  • Eligible investors are:
    • those that can invest at least USD 1 million
    • institutional investors
    • professional investors as defined in the relevant order
  • Eligible Investor Funds can be open or closed. Exchange Traded Funds can only be closed-ended
  • Transfer of interests only to other eligible investors
  • Can take any form recognised under Jersey law
  • Subject to the structure complying with the relevant order, there is no regulatory oversight
  • Offer document must state prominently that the fund is unregulated together with suitable investment warnings
  • Notice of unregulated funds to be filed with registrar of companies

Expert Funds

  • Collective investment fund
  • Unlimited offers to unlimited investors
  • Light touch regulation due to expert nature of investors
  • Investors qualify on a list of criteria, amongst others a minimum investment of USD100,000 or currency equivalent
  • JFSC approval process is streamlined to allow establishment within 3 days of submission
  • Investment Manager must be regulated within OECD or otherwise approved by the JFSC
  • Offer document must comply with certain content requirements
  • Fund company must have at least 2 Jersey resident directors
  • Fund must be Jersey company, General Partner or Trustee
  • Must have a Jersey monitoring functionary; either administrator or manager

Listed Funds

  • Fast track establishment of corporate closed-ended fund that are listed on a recognised stock exchange i.e. CISX
  • Very similar criteria to an Expert Fund

Unclassified Funds

  • For funds that can not fall under the expedited regulatory approach of the Expert Fund Guide or the Listed Fund Guide
  • JFSC will regulate fund under its policy, including the promoter under the promoter policy
  • JFSC will review all material documents related to the fund
  • Extent of compliance with regulation will depend on minimum investment amount and whether fund is open or closed-ended
  • For open-ended funds, require a Jersey resident manager and custodian
  • For closed-ended fund, no separate custodian necessary

Recognised Funds

  • Authorised as Collective Investment Funds complying with a separate prescriptive order
  • Can be sold in the UK under the Financial Services and Markets Act 2000; Jersey’s designated territory status
  • More highly regulated
  • Provide investor access to a statutory compensation scheme
  • Recognised funds allow marketing in other countries: Australia, South Africa, Belgium, Hong Kong
  • Functionaries are regulated under Collective Investment Fund (Jersey) law 1988

Source: Jersey Funds Association


Herald Trust