In the first step of a radical overhaul and rationalisation programme for Jersey fund regulation, on 1 August 2016 the Jersey Financial Services Commission (JFSC) and the States of Jersey (Government) issued a joint consultation on proposals for substantial amendment to Jersey's private funds regulation.
The changes, if implemented, are the first 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).
Next year, 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.
The first consultation proposes the rationalisation and consolidation of Jersey's private and unregulated fund sector with the:
- Introduction of a Very Private Placement Fund (VPPF) guide;
- Introduction of a new and universal professional investor definition;
- Introduction of modern regulatory powers in the Control of Borrowing (Jersey) Law 1947 (COBO Law);
- Phasing out COBO only funds; and
- Phasing out unregulated exchange traded funds.
Article first published by Appleby in August 2016
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