There will be no longer be a need to seek regulatory approval when establishing a fund in Jersey. At a time when Jersey is enjoying record growth in its funds sector, the Island has launched details of a new Unregulated Funds Regime, designed to provide fund introducers with the simplicity, certainty and speed they seek when setting up specialist funds.
“This is a significant step forwards for the funds industry in Jersey, and is seen as a natural progression in our goal to become the European jurisdiction of choice for the alternative funds sector,” says Geoff Cook, chief executive of Jersey Finance Limited. “Fund promoters of high net worth, sophisticated investors and institutions will have greater flexibility when choosing Jersey and will be able to structure their funds to suit both commercial and tax requirements.”
Set for introduction in early 2008, the new Unregulated Funds Regime includes an Unregulated Eligible Investor Category (UEIC) and an Unregulated Exchange Traded Category (UETC). Funds in these categories will not be approved or authorised by the Island’s financial regulator, the Jersey Financial Services Commission.
Professionals in Jersey welcoming the new categories believe that they will appeal to promoters, such as hedge fund managers and other financial institutions, who look to set up their funds in unregulated jurisdictions.
Richard Thomas, chairman of the Jersey Funds Association, who announced details of the new initiative at Jersey’s 3rd Annual Funds Debate organised by Jersey Finance in London yesterday, says, “We have been taking note of the regulatory changes that have been introduced in other jurisdictions and following extensive consultation with the JFSC are now ready with a new element, which has been missing from the Jersey product range, in the form of Unregulated Funds.”
Jersey’s existing regulated funds, including the Expert Fund Regime, introduced by the JFSC in 2004, and the Listed Fund Guide, launched this year, successfully streamlined the authorisation process for regulated alternative investment funds and led to a surge of new business in the alternative funds sector.
The value of the funds industry in Jersey recently reached a new record high of Ј210 billion and Funds in the alternative investment fund sector accounted for more than half of that total. It is anticipated that the new Unregulated Funds Regime will provide a further significant boost to the Island’s funds capabilities in the alternative investment market.