Following consultation with representatives of the Jersey funds
industry, the Jersey Financial Services Commission
("JFSC") has introduced an additional option to the range
of possible fund regimes under which prospective fund promoters can
launch a collective investment scheme.
This is the new Private Placement Fund ("PPF")
Why was the PPF regime introduced?
The PPF regime is designed to offer fund promoters a fast track
to launch closed ended investment vehicles which meet certain
The JFSC has undertaken to provide a response to applications
within 72 hours without the need for the more in-depth regulatory
review of the Private Placement Memorandum ("PPM") and
promoters that is required under the existing regimes.
There are a number of criteria that the fund must meet to
qualify for the PPF regime but the key ones are as follows:
A PPF must be a closed ended fund
A PPF can only be promoted to a maximum of 50 professional or
sophisticated investors. A professional investor being someone with
the proven experience to make an informed investment decision and a
sophisticated investor being someone who invests a minimum of
A PPF must have a Jersey Designated Service Provider
("DSP") holding an FSB licence as its administrator
It can include Jersey and non-Jersey structures, although any
non-Jersey structure must meet rules concerning Jersey based
directors, trustees or general partners
The PPF's promoter and PPM must meet certain standards and
it is the responsibility of the DSP to certify that this is the
The registration process
There is a single form for registration containing declarations
by and information on the promoter, as well as details of principal
persons and the draft PPM which is certified by the DSP.
On the back of this, the JFSC will provide the relevant consents
and the PPF can proceed.
The JFSC will do its own regulatory checks and, as they reserve
the right to take remedial action if these checks prove to raise
concerns, the onus is on the promoter and the DSP to ensure that
everything is in order before making the application.
Who will find this useful?
The new PPF regime should provide the flexibility to allow
promoters to move quickly to take advantage of an investment
opportunity, particularly where those fund promoters have access to
a pool of core institutional or other sophisticated investors who
are able to make their own informed investment decisions without
the need for the added comfort of in-depth regulatory review.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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