Offshore Services- Jersey
Persons wishing to become a Jersey functionary of a non-Jersey fund that is publicly offered are generally required to obtain a collective investment fund (CIF) permit(1) from the Jersey Financial Services Commission. The Non-Jersey Domiciled Fund Guide,(2) issued by the commission, provides a streamlined application process to obtain CIF permits for functionaries(3) of non-Jersey domiciled funds which are equivalent to either Jersey expert funds or Jersey-recognized or undertakings for collective investment in transferable securities (UCITS) funds.
Non-Jersey Fund Equivalent to Jersey Expert Fund
The key requirements for a non-Jersey fund to be approved by the commission under the guide on this basis are as follows:
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The fund should describe itself as being suitable for only expert, experienced, institutional or sophisticated investors;
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A minimum investment requirement of $100,000 should apply, unless the investor is a person of substantial net worth or professional knowledge or is connected with the fund or a functionary of the fund (including carried interest arrangements);
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The fund's offer document should include an investment warning along with all material information which investors would reasonably expect for the purpose of making an informed judgement about investment in the fund; and
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Audited annual accounts of the fund must be available.
The Jersey functionary of the non-domiciled fund is required to confirm to the commission that it has taken reasonable steps to satisfy itself that the investment manager of the fund is an appropriate person. In general, these requirements include:
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having no convictions or disciplinary penalties;
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being able to pay its debts;
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being appropriately regulated;
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possessing relevant experience; and
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meeting the commission's span of control requirements.
Similar confirmations may be required for distributors of the fund if they are a driving force behind the fund or if they introduce the majority of investors to the fund.
Where responsibility for the management of the fund is to be assumed by a Jersey entity (eg, a Jersey general partner of a Cayman limited partnership), the commission requires that entity to accept formally its responsibility for the management and control of the fund.
Non-Jersey Fund Equivalent to Jersey Recognized Fund or UCITS Fund
The streamlined application process can also be used by functionaries seeking CIF permits to provide services in respect of a non-Jersey domiciled fund which is equivalent to a Jersey recognized fund or is a UCITS fund. In particular, this applies where: (i) a functionary that currently holds a CIF permit as a functionary of a Jersey recognized fund (or equivalent) or a UCITS fund applies to become a functionary (of the same description) of an equivalent non-Jersey domiciled fund; or (ii) a functionary that currently holds a CIF permit to act as a distributor or registrar of any fund applies to become a distributor or registrar of an equivalent non-Jersey domiciled fund.
Other Funds
The commission will consider other funds on a case-by-case basis. The guide is primarily aimed at those functionaries that already hold CIF permits for other funds. If the applicant does not already hold such a permit, an 'in principle' approach should be made to the commission prior to any formal application being submitted.
Application Process
Key features of the streamlined applications process under the guide are as follows:
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The commission will (subject to any specific problems with any application) issue the permit(s) within four working days;
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An application form must be submitted to the commission along with the relevant regulatory fee;
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Derogations can be sought in advance; and
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Pre-clearance can be sought in advance for functionaries or principals not already known to the commission in order to avoid delay in the approval process.
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