Both Jersey and Guernsey have recently released new private fund regimes, which are expected to be of considerable interest to fund promoters who are looking to launch new funds in either of the jurisdictions, but where a fully regulated product would not be necessary or appropriate at the time of launch. This guide summarises the key features of each new regime.
Jersey Private Fund Guide ("JPF")
On 15 March 2017, the Jersey Financial Services Commission ("JFSC") announced a new Jersey Private Fund Guide ("JPF"), to be effective from Tuesday 18 April 2017. The introduction of the JPF aims to amalgamate and replace the three other Jersey products: the Very Private Funds, Private Placement Funds and COBO Only Funds. Once the use of JPFs becomes effective, new applications under the older regimes will not be possible.
Guernsey Private Investment Fund Regime ("PIF")
Similar to the new Jersey Private Funds Regime, the Guernsey Financial Services Commission ("GFSC") introduced the Private Investment Fund Rules 2016 (the "PIF Rules") in November 2016. The PIF Rules create a new class of private fund which may be registered with the GFSC under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 (as amended) (the "POI Law"). PIFs may be either open or closed-ended, and are aimed at the situation where a manager has a close working relationship with a small group of investors. In this situation a more informal and flexible regulatory regime may be appropriate for the fund and its investors.
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.