Jersey Private Funds (JPFs)

What is a Jersey Private Fund?

A ‘Jersey Private Fund’ (JPF) is a simple and highly flexible fund product that will be of interest to promoters who are looking to launch funds under a lighter touch regulatory regime that provides certainty, flexibility and speed to market. 

Key features of a JPF: 

• Up to 50 investors; 
• Fast-track 48 hour regulatory approval; 
• No prior approval of promoter; 
• Offering documents permitted, not required; 
• Investment warning & disclosure statement signed by investors;
• Professional or eligible investors (min £250,000); 
• Must appoint a Jersey regulated Designated Service Provider.

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Alternative Investment Fund Managers Directive (AIFMD)

The AIFMD regulates all funds that market into the EU irrespective of the domicile of the manager. While Jersey managers are beyond the full compliance of AIFMD, they have ready access to investors within the EU through NPPRs. However, Jersey is well-primed to receive the passport should it be extended to third countries, having been positively assessed by the European Securities and Markets Authority (ESMA) – the agency that governs AIFMD. 

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National Private Placement Regime (NPPR)

Jersey funds are marketed to EU investors in Member States via NPPRs, an alternative route to the AIFMD passport. This route is working extremely well and has been tried and tested in key alternative funds markets such as the UK, Netherlands, Ireland and the Nordic countries. NPPRs offer: 

• Simplified regulatory obligations; 
• Familiarity outside the AIFMD for non-EU investors. 

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Why Jersey for Funds?

A Leading Funds Jurisdiction

Jersey has more than 50 years’ experience in structuring, managing and administering funds. The last five years has seen the number of Jersey-based promoters almost double. 

Jersey offers exceptionally high standards of service and governance. It also has a large pool of expertise, including a wealth of professional non-executive directors with extensive knowledge of funds across a variety of asset classes. 

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A Global Hub

• Cost effectiveness offers better returns: Jersey’s streamlined regulatory regime can result in lower running costs and higher investor returns in a jurisdiction free from value added tax (VAT). 
• Regulatory certainty and innovation: The JFSC is an approachable, globally respected and co-operative regulator, supervising pragmatic regulation that meets international standards (the International Monetary Fund, the International Organisation of Securities Commissions, the European Securities and Markets Authority and the Financial Action Task Force). 
• Tax simplicity: Jersey offers a tax-neutral environment with no VAT or capital gains tax (CGT) and is not reliant upon a complex system of tax rulings, exemptions and deductions, hybrid financing or double tax treaty networks. 
• Political and economic stability: Jersey is a politically and fiscally autonomous and stable British Crown Dependency with a secure, special relationship with the United Kingdom (UK), but outside of the UK and outside of the EU. We are therefore perfectly positioned with regards to Brexit developments. 
• Remuneration: To obtain a full AIFMD ‘passport’ in Europe, the manager is required to disclose remuneration details of key employees including partners. If a Non-EU Manager does not need to market on a pan-European basis, there is no great benefit to an AIFMD passport and a lighter approach is permissible under the NPPR. 
  

Our fund services include

Fund Formation: 

• Establishing the JPF in whichever form, be it a trust, company or partnership structure; 
• Coordinating the drafting of relevant fund documentation with legal, tax and other relevant advisors; and
• Arranging the set-up and operation of bank and custody accounts. 

Fund Administration & Accounting: 

Maintaining the books, records and accounts of the fund: 

• Preparing the net asset valuation calculations, with frequency ranging from quarterly to annual; 
• Reconciling the fund’s portfolio and bank accounts with respective brokers, banks and/or custodians; 
• Coordinating with relevant specialists to value the underlying assets of the fund; 
• Calculating all fees and accruals, including management and performance fees; 
• Operating the fund’s bank account, providing bank signatories as required; and
• If necessary, co-ordinating the audit process, preparing draft financial statements and liaising with auditors.

Investor Relation Services:

• Maintaining share, unit and partnership registers;
• Processing of all investor related transactions, including subscriptions, redemptions, transfers, capital calls, trades and distributions;
• Monitoring compliance with fund documentation in regard to notice periods, minimum investment amounts and fee payments;
• Collecting and verifying customer due diligence (CDD) and know your client (KYC) documentation; and
• Reporting and other communications with investors.

Corporate Secretarial Services:

• Providing company secretarial and registered office services;
• Maintaining the statutory records and minute books;
• Attending to all statutory filings;
• Arranging for payment of annual fees to local registrars and regulators;
• Preparation for and attendance at board, shareholder and partner meetings and taking of minutes; and
• Arranging for the execution of board and shareholder resolutions.

Designated Service Provider:

• Ensuring compliance with all necessary Jersey AML/ CFT requirements;
• Ensuring all documents relating to due diligence enquiries are readily retrievable in Jersey;
• Completing and submitting the JPF Form and the JPF Return; and
• Notifying the JFSC of any material changes.

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