Funds in Jersey
In February 2004 the Jersey Financial Services Commission introduced a new type of fund in Jersey aimed at professional investors seeking to establish investment vehicles that are not subject to the more formal regulatory procedures which govern public funds and their promoters.
Expert Funds are a form of collective investment vehicle structured to meet the aims and objectives of high net worth investors who are generically classed as Expert Investors and may be individuals, partnerships, other unincorporated associations or companies or institutional investors and who are deemed to require limited regulatory protection.
Classed as "Expert Investors" are those who are able to make an investment in the fund of not less than $100,000 and will be required to sign an investment warning acknowledging the nature and risk of the underlying investments proposed.
Expert Funds are not obliged to diversify risk and may adopt an open policy with regard to the underlying investments and gearing which must be fully disclosed to investors but do not require prescribed consent from the Commission.
An Expert Fund may be in any form recognised under Jersey law and may be an open-ended or a closed-ended fund.
The promoters of Expert Funds are not subject to prior approval or regulatory scrutiny. The investment advisors to the fund must be regulated within their own industry and/or jurisdiction.
The application process can be completed within a short time frame. The Commission quotes three days in the event that all of the application documents submitted do not give rise to further questions. An application is submitted to the Commission setting out the key features of the fund and confirming that all of the necessary regulatory matters have been met together with the Offering Documentation and the prescribed fee.
For further information about the practical uses of Expert Funds and the procedures for establishing a fund please contact us.