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Jersey Launches New Private Fund Product

by Jason Gorringe, Lowtax.net, London
17 March, 2017

Jersey is hoping to improve its competitiveness as a funds domicile through the introduction of a new regulatory framework for private funds.

The Jersey Private Fund, announced recently by the island's financial services regulator, will enable funds with up to 50 investors to take advantage of a fast-track authorization process and lighter ongoing regulatory requirements.

It provides a more flexible and versatile framework, which will further improve the speed and ease with which funds marketed to professional investors can be established. According to Jersey Finance, the promotional agency for the island's financial services industry, the framework ensures Jersey's compliance with international standards by requiring the appointment of a Jersey-based administrator.

The Jersey Private Fund will also be available to managers seeking to market funds into Europe through National Private Placement Regimes. This route has been a strong growth area for Jersey's funds industry, with December 2016 figures showing more than 250 alternative investment funds and 115 authorized alternative investment fund managers marketing into the EU via Jersey.

The launch of the Jersey Private Fund product will see the phasing out of all other Jersey private products, although existing private funds will be able to continue to operate until the end of their natural life. Alternatively, existing private funds can apply to the Commission to convert into another Jersey fund product, including a Jersey Private Fund.

The Commission is now consulting on a proposal to charge Jersey Private Funds an annual fee of GBP500 (USD618). This annual fee is intended to cover the cost of supervising the Jersey Private Fund regime going forward.

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