A special fund regulation regime implemented by the JFSC has been in place in Jersey for more than three years now. If you’re interested in setting up a JPF in Jersey, you should keep in mind that the said regime has provided JPF managers with far more tools for their management.
So, let’s have a closer look at what potential investors contemplating establishing JPFs in Jersey should keep in mind prior to embarking on this challenging undertaking.
All those considering starting private funds in Jersey should bear in mind that they can be established as JPFs. Pursuant to COBO, JPFs are allowed to make no more than a certain number of proposals to potential investors. COBO’s consent is granted by the JFSC within two days of getting a corresponding application.
Selling JPFs in Jersey requires sellers to comply with specific AIFMD requirements applicable to JPF managers. Hence, obtaining a JPF manager license in the EU or EEA involves obtaining an AIFM certificate applicable to funds in Europe.
Once a certificate is obtained, JPFs can be traded in Europe via different placement regimes.
There are several ways in which JPFs in Jersey can be set up, including:
- as companies;
- as an LP;
- as an SLP;
- as an ILP.
Launching JPFs in Jersey doesn’t require appointment of managing directors residing in Jersey. Setting up public JPFs in Jersey or registering closed-ended JPFs in Jersey doesn’t require appointing auditors. However, JPFs must appoint Jersey-registered service providers to ensure compliance with applicable AML laws and DD.
Selling JPFs in Jersey is only permitted to certain categories of investors that:
- receive interest on deposits that exceed two hundred fifty pounds;
- meet the definition of pro investors.
One of the benefits of JPFs includes having a special status which allows Jersey-registered investors & advisors not to comply with FSA requirements (except for cases where AIFMD provisions apply).
JPFs do not have to come up with a document containing a proposal. Obtaining a JPF manager license or applying for a Jersey investment advisor license requires ensuring complete transparency with regard to taxes or paying no income tax in Jersey.
Need more information on establishment of investment funds in Jersey? Looking for legal advice on JPF regulation? Planning on undertaking investment activities in Jersey? Why not reach out to IQ Decision UK? Our legal assistants will be happy to give you a hand with any legal issues you’re facing.