Executive Summary
- Jersey maintains its position as a leading international finance centre with significant reputation in the global funds industry
- Vistra Jersey administers over $29 billion in Funds Assets, including $5 billion in Private Equity, $13 billion in Real Estate, and $11 billion in Capital Markets
- 448 Jersey-based funds are successfully marketing to EU investors as of December 2024
- Jersey offers key advantages through its NPPR access to EU markets while avoiding full AIFMD compliance costs
- The Jersey Private Fund (JPF) structure continues to gain popularity with over 730 JPFs established since its 2017 introduction
Market Overview
- Jersey has established itself as a global hub for attracting capital from key investor markets: North America, UK, Asia, Gulf Region, Switzerland, and the EU
- The jurisdiction continues to build on over 50 years of experience in global finance
- Notable growth in the JPF structure with more than 730 funds established since 2017
- Strategically positioned between the UK and EU, providing optimal market access
Key Advantages
- Regulatory Framework: Proactive and innovative fund regimes that are flexible and dynamic
- Political and Economic Stability: Strong governance, substance, and financial stability
- Geographic Access: Proximity to EU and UK enabling faster global market access through private placement
- Tax Neutrality: A competitive tax-neutral environment with no VAT or CGT
- International Credentials: Endorsed by IMF, OECD, EU, and MONEYVAL
- Speed to Market: Faster authorization process than competing jurisdictions—days for lightly regulated structures, weeks for closely regulated ones
- Digital Innovation: Embraced by the regulator with online application processes for efficient fund authorization
- AIFMD II Advantage: Jersey AIFMs will face significantly fewer regulatory burdens than EU AIFMs once AIFMD II is implemented in 2026
- Proven EU Distribution: Successful track record of funds raising capital across multiple EU markets through National Private Placement Regimes
Fund Structures and Vehicles
Jersey Private Fund (JPF)
- Description: Offered to 'professional' or 'eligible' investors only
- Key Features:
- Maximum of 50 initial offers and investors
- Quick 48-hour COBO consent (subject to no queries)
- No stock exchange listing permitted
- No requirement to appoint an auditor
- Flexible structuring options (company, limited partnership, unit trust)
- Requires Jersey-based designated service provider (DSP)
Expert Fund
- Description: Light-touch regulated fund for Expert Investors
- Key Features:
- No cap on number of investors
- Three-day turnaround on approval
- Can be structured as company, limited partnership or Jersey unit trust
- Requires Jersey administrator with two resident directors
- Can be listed on a stock exchange (with provisions)
Listed Fund
- Description: Light-touch regulated fund specifically for listed entities
- Key Features:
- Must be listed on JFSC pre-approved exchanges (e.g., London, New York, Hong Kong)
- Must be Jersey-incorporated companies
- Closed-ended structure only
- Requires two experienced Jersey-resident directors
- Majority independent board requirement
- Mandatory audit and Jersey administrator/manager appointment
Eligible Investor Fund
- Description: Available to investors meeting specific criteria
- Key Features:
- 11 eligibility categories, including $1M minimum investment
- Can be open or closed-ended
- Flexible structure (company, unit trust, limited partnership)
- May be listed with transfer restrictions
- Requires two Jersey-resident directors and auditor appointment
Unregulated Eligible Investor Fund
- Description: Offers maximum flexibility outside regulatory regime
- Key Features:
- Immediate launch upon notice to Registrar
- No requirement for Jersey administrator, custodian, directors, or auditors
- Not AIFMD compliant (cannot market to EU/EEA)
- Flexible structuring as open/closed-ended, company, trust, or partnership
- Same investor eligibility criteria as regulated Eligible Investor Funds