The Jersey Financial Services Commission (JFSC) has introduced the Jersey Private Fund (JPF) Guide, setting out the criteria for Jersey’s new private fund product, which can be marketed to up to 50 professional investors.
The launch follows a joint consultation between industry and government, undertaken in 2016, which focused on the ‘rationalisation and consolidation of Jersey’s private fund and unregulated fund regimes’.
The regulator has also taken account of product developments in other jurisdictions.
The launch of Jersey’s new single private fund product will see the phasing out of all other Jersey private products, although existing private funds will be able to continue to operate until the end of their natural life.
Alternatively, existing private funds can apply to the JFSC to convert into another Jersey fund product, including the JPF.
Geoff Cook, CEO, Jersey Finance, welcomed the move. "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, a strong growth area for Jersey’s funds industry.
The Jersey Private Fund regime will operate alongside existing regulatory frameworks to meet the requirements of all managers and investors.
Mike Byrne, Chair of Jersey Funds Association, said: “The new Jersey Private Fund comes following significant engagement between industry, regulator and government, aimed at making our overall funds offering clearer and simpler whilst giving fund managers and investors greater choice.
“We anticipate the regime will find real appeal among our institutional and professional investor client base, right across the private equity, real estate, infrastructure and debt and credit fund asset classes.”
Subject to consultation on the JPF annual fee provided for under the amended Control of Borrowing Order (COBO) fees notice – also issued by the JFSC today – industry will be able to submit applications to the regulator, in accordance with the JPF Guide, from Tuesday 18 April.
• The feedback paper on the consultation on Jersey’s private and unregulated fund regimes can be viewed here
• To view the Jersey Private Fund Guide click here