Answer ... Recognised Funds and Unclassified Collective Investment Funds have prescriptive criteria for the types of assets that may be held by the fund and in what proportion different asset classes must be held, as set out in the Collective Investment Funds (Recognised Funds) (Rules) (Jersey) Order 2003 (Recognised Funds Order) and the OCIF Guide respectively.
Recognised Funds and Unclassified Collective Investment Funds are subject to the rules on borrowing which are set out in the Recognised Funds Order and the OCIF Guide respectively.
There are no statutory restrictions on the ability of an Expert Fund to borrow, but the fund's approach to borrowing and gearing must be set out in the offer document, and if the fund can borrow more than 200 per cent of the net asset value of the fund, then full details of how the risk posed by such borrowing is to be managed is to be disclosed to the JFSC in the application and the JFSC can undertake additional scrutiny. There are no investments or borrowing restrictions in the JPF Guide. However, regard must be had to the JFSC's Sound Business Practice Policy if the assets may impact the reputation of the Island, for example if they relate to weapons, the extraction of minerals or natural resources or crypto currency.
Answer ... As noted above Recognised Funds and Unclassified Collective Investment Funds have criteria in respect of the types of investment they can hold and what proportion of their investments must be in different asset classes. As also noted above, regard should be had to the JFSC's Sound Business Practice Policy.