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Next step in Jersey’s sweeping review and revamp of funds regulation

20 March2017

Article first published by Appleby in March 2017

Introduction

Further developments in the radical overhaul and rationalisation programme for Jersey fund regulation were announced on 15 March 2017. The Jersey Financial Services Commission (JFSC) and the States of Jersey (Government) issued a joint feedback paper on their consultation on proposals for substantial amendment to Jersey’s private funds regulation and published the new Jersey Private Fund Guide. The changes are the next step in an overhaul of the universe of regulation of investment funds in Jersey. Later in the year a consultation is expected on changes to the public fund regulatory environment and the introduction of a manager led product (the JRAIF) which will not be required to adhere to the Code of Practice for Jersey Certified funds (being supervised through its Alternative Investment Fund Manager (AIFM) and complying with the applicable sections of the Alternative Investment Fund Managers Directive). In addition the JFSC and Government plan to review the effectiveness of investment fund related exemptions to the Financial Services (Jersey) Law 1998, as amended (FSJL) along with certain other supervisory aspects of related legislation.

Private fund simplification

The measures announced on 15 March 2017 are the rationalisation and consolidation of Jersey’s private and unregulated fund sector with the:

1. Introduction of a Jersey Private Fund (JPF) guide effective 18 April 2017 and exclusion of private non-fund structures from authorisation by the JFSC;

2. Introduction of a new and universal professional investor definition;

3. Introduction of modern regulatory powers in the Control of Borrowing (Jersey) Law 1947 (COBO Law);

4. Phasing out of Private Placement Funds (PPFs), Very Private Funds (VPFs) and COBO only funds; and

5. Phasing out unregulated exchange traded funds.

To view further discussion on each of these please click the read more button.

 

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