Jersey: Regulation Of Investment Advisors And Managers - Jersey Guide

Last Updated: 3 January 2013
Article by Adrian Odell

This guide outlines the legal and regulatory issues related to the carrying on of investment advisory or management business in or from within Jersey. This is intended as a general guide, however, specific reference to fund structures is included.

There are two key issues to consider in relation to a person carrying on investment advisory or management business in or from within Jersey ("IB Person"), the first being the substance of the services which will be provided, and the second being the regulation (if any) to which the person to whom the services will be provided is subject. This analysis will determine which type of regulation will be applicable to the IB Person, and gives rise to a distinction between an IB Person who will be regulated for "investment business" and/or "fund services business", in each case as defined below.

Investment Business

The Financial Services (Jersey) Law 1998 ("FSJL"), regulates the carrying on of financial services business by any person in or from within Jersey. The FSJL also covers the carrying on of financial services business by a company incorporated in Jersey, in any part of the world.

Article 2 of the FSJL provides that a person carries on financial services business if by way of business the person carries on investment business, trust company business, general insurance mediation business, money service business or fund services business. The FSJL provides that:

A person carries on investment business if the person:

(a) deals in investments, that is, the person buys, sells, subscribes for or underwrites investments, either as principal or as agent;

(b) undertakes discretionary investment management, that is, the person decides as agent to buy, sell, subscribe for or underwrite investments on behalf of a principal;

(c) gives investment advice, that is, the person gives to persons in their capacity as investors or potential investors advice on the merits of:

(i) the purchase, sale, subscription for or underwriting of a particular investment; or

(ii) the exercise of a right conferred by an investment to acquire, dispose of, underwrite or convert the investment.

An IB Person who carries on investment business under the FSJL will require registration under the FSJL for this purpose unless an applicable exemption applies.

Further, the IB Person would be required to comply in full with the "Codes of Practice for Investment Business" (the "IB Code") issued by the Jersey Financial Services Commission ("JFSC") and any related requirements. The definition of investments is contained in Schedule 1 to the FSJL.

It may appear from the definition of investment business that every IB Person who carries on investment business, on the basis described above, would fall to be regulated for investment business under the FSJL. However, not every IB Person providing services which fall within this definition will be carrying on investment business. This is due to specific exemptions which either exclude the activity from being regulated or deal with the regulation in an alternative manner. This is dealt with under the part of this note entitled "Important Exemptions Relevant to Investment Business".

Important Exemptions relevant to Investment Business

The following is a summary of certain exemptions (in whole or in part) to the carrying on of investment business.

Part 1 of Schedule 2 to the FSJL

  • Newspapers, broadcasting and information services
  • Executors and administrators, tuteurs and Guardians
  • Certain persons regulated under the Collective Investment Funds (Jersey) Law 1998
  • Persons registered to carry on fund services business (see below for further detail)
  • Certain overseas distributors
  • Company that is general partner or trustee of Unregulated Fund (defined below)
  • Dealing as principal
  • Dealing as agent by professionals and non-investment businesses
  • Giving advice in the course of noninvestment Business
  • Instruments creating or acknowledging Indebtedness
  • Connected companies and joint Enterprises
  • Employee's share schemes
  • Issuing of shares, debentures, etc.
  • Sale of company
  • Dealing as bare trustee
  • Investment advice given by trustees
  • Discretionary investment management by company directors
  • Investment advice between directors
  • Investment advice given by protectors
  • Long-term insurance business by insurance companies

The Financial Services (Investment Business (Special Purpose Investment Business – Exemption) (Jersey) Order 2001, provides an exemption in the case of special purpose investment business provided to a special purpose regulated scheme.

Fund Services Business

Apart from Recognised Funds (highly regulated retail funds), fund type structures in Jersey may be broadly classified as follows:

(a) Unclassified funds, which would include Expert Funds and Listed Funds, established pursuant to the Collective Investment Funds (Jersey) Law 1988 ("CIF Funds");

(b) Unregulated funds, being either Eligible Investor Funds or Exchange Traded Funds, established pursuant to the Collective Investment Funds (Unregulated Funds) (Jersey) Order 2008 ("Unregulated Funds"); and

(c) Private Funds, Private Placement Funds and Very Private Fund type structures governed solely by the Control of Borrowing (Jersey) Order 1958 ("COBO Funds").

Paragraph 3A of Part 1 of Schedule 2 to the FSJL excludes from the ambit of investment business the carrying on of fund services business by a person who is registered under the FSJL to do so.

An IB Person who acts as investment advisor or manager in relation to a fund which falls into paragraphs (a) or (b) above (ie. services provided to a CIF Fund or Unregulated Fund), would be carrying on fund services business under the FSJL and, accordingly, the IB Person would require registration under the FSJL for this purpose. If so, the IB Person would also be required to comply in full with the JFSC's "Codes of Practice for Fund Services Business" (the "FSB Code") and any related requirements. This excludes regulation for investment business for the provision of those services.

An IB Person who acts as investment advisor or manager in relation to a fund which falls into paragraph (c) above would not be carrying on fund services business under the FSJL. Instead, the services provided would have to be evaluated with reference to the definition of investment business under the FSJL. This is because the definition of fund service business only applies in the case of services provided to CIF Funds or Unregulated Funds (as per paragraphs (a) and (b) above).

Although Unregulated Funds may only be constituted under the Collective Investment Funds (Unregulated Funds) (Jersey) Order 2008, CIF Funds may be located worldwide and reference should therefore be had to the Collective Investment Funds (Jersey) Law 1988, for further information of the definition of CIF Fund should this be required.

Professional Investor Regulated Scheme The Financial Services (Investment Business) (Restricted Investment Business – Exemption) (Jersey) Order 2001 ("Exemption Order") contains an important exemption in relation to the provision of "restricted investment business", as defined in the Exemption Order, in relation to an investment scheme which is a professional investor regulated scheme. Restricted investment business includes the provision of investment advice and investment management to a professional investor regulated scheme.

An investment scheme is a professional investor regulated scheme if: (1) relevant consent has been granted pursuant to the Control of Borrowing (Jersey) Order 1958 ("COBO") (this means that the Exemption Order may not be relied on in the case of CIF Funds as they are carved out of COBO); and (2) each investor in the scheme either has made a minimum subscription of £250,000, or is a professional investor as defined in the Exemption Order, and has signed an investment warning.

There are a number of categories of professional investor, which includes any person whose ordinary activities involve the person in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of the person's business or who it is reasonable to expect will acquire, hold, arrange or dispose of investments (as principal or agent) for the purposes of that business.

Certain overseas distributors

This is a key exemption as it arises frequently in practice in relation to a foreign entity which is promoted as a potential investment to a person in Jersey. In cases where the transaction is a specified transaction as defined

Manager of a Managed Entity

Barring a substantive presence in Jersey, an IB Person would usually discharge the majority of its functions, and comply with the requirements of the FSJL and FSB Codes, through a person appropriately regulated for the services locally (the "Manager"). In this sense, the IB Person would comprise a Managed Entity and the Manager would comprise a Manager of a Managed Entity in accordance with the requirements of the JFSC. In all cases, the IB Person would remain ultimately responsible for the discharge of the regulatory requirements applicable to it.

In the case of a Manager providing services to an IB Person carrying on fund services business, the provision of services would be subject to the requirements as set out in the JFSC's "Guidance Note for a Manager of a Managed Entity and Certain Managed Entities" (the "Mome Guide").

In the case of a Manager providing services to an IB Person carrying on investment business, the provision of services would be subject to the requirements as set out in the JFSC's "Policy Statement: Licensing Policy in respect of those activities that require registration under the FSJL" (the "Licensing Policy").


The Financial Services (Trust Company and Investment Business (Accounts, Audits and Reports)) (Jersey) Order 2007, applies among others to a person registered for investment business and prescribes certain requirements in relation to the appointment of an auditor, as well as the maintaining of reports and audited accounts for a period of at least ten years.

The Financial Services (Investment Business (Client Assets)) (Jersey) Order 2001, governs the manner in which a person registered for investment business under the FSJL holds money or property on behalf of clients.

A person who is not regulated for investment business but instead fund services business will not be covered by the above Orders, but instead will be covered by the FSB Code and related provisions.


The regulation in Jersey of an IB Person carrying on of investment advisory or management business requires examination of the nature of the services which will be provided, as well as the classification of the person to which services will be provided. Both are key in assessing the regulation to which the IB Person will be subject and, furthermore, whether a relevant exemption will apply. It is possible for circumstances to arise where an IB Person providing investment advisory or management services in or from within Jersey to be required to be regulated for financial services business and/ or fund services business as outlined in this note.

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.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Mondaq Advice Centre (MACs)
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.