JERSEY: Consultation issued on Jersey’s private fund and unregulated fund regimes

Tuesday August 2 2016

A joint consultation paper has been issued by the Government of Jersey and the Jersey Financial Services Commission on Rationalisation and Consolidation of Jersey’s Private Fund and Unregulated Fund Regimes.

This Consultation Paper arises from the work undertaken as part of the Funds Review Project by a working group comprised of members from the Government, the Commission, Jersey Finance Limited and industry (including the Jersey Funds Association).

Subject to consultation, it is intended that the proposed enhancements which have been identified as a series of initiatives by the Smaller Working Group be divided into three separate phases of the Funds Review Project:

Phase 1: This forms the basis of this Consultation Paper and is aimed at rationalising Jersey’s private fund space and consolidating Jersey’s unregulated fund space.

Phase 2: A Government/Commission consultation paper will be issued later this year on phase 2. This is aimed principally at consolidating the public fund space by reducing the number of CIF regimes to three: namely (i) a new and improved Expert Fund (which will include listed); (ii) a refined retail fund product (which will ‘wrap up’ existing Unclassified Open-Ended Funds and Recognized Funds); and (iii) an AIFMD compliant regime.

This Consultation Paper sets out the details of, and invites responses on, the proposed implementation of Phase I of the Funds Review Project.

The joint consultation paper proposes to:

• introduce a new very private placement fund guide;
• introduce a new multi-purpose Jersey “professional investor” definition;
• introduce modern regulatory powers in the Control of Borrowing (Jersey) Law 1947;
• phase out COBO only funds; and
• phase out unregulated exchange-traded funds.

The Government and the Commission invite comments on this joint Consultation Paper and comments should reach Jersey Finance Limited by 12 September, 2016.

Click the link at the top of the page for more information.