First Fund Authorised Under Jersey's New Expert Fund Regime

by Robert Lee, Tax-News.com, London

25 March 2004

The Jersey Financial Services Commission has authorized the first fund, a property fund, to operate under the new fast track expert funds regime, which government promotional body Jersey Finance Limited reports has attracted a significant amount of interest from promoters in the six weeks since its launch.

The property fund received regulatory consent from the Island’s Regulator the new regime in less than two days from the point when the application was received.

City advisers were given further details of the advantages that the Expert Fund Guide would provide to the promoters of hedge funds, private equity schemes and other alternative investment strategy funds in a series of presentations at a seminar in London on Monday (22nd March).

Delegates heard that in addition to new business, the Regulator was willing to look at existing funds that are issued under a rolling programme over a period of time to consider, depending upon the type of structure, whether the authorisation process for future units of such funds could also be streamlined under the Expert Funds criteria.

“Latest figures show that specialist funds already contribute 25 per cent of the total value of the funds industry in Jersey,” commented Phil Austin, Chief Executive, Jersey Finance Limited, the promotional arm for Jersey’s Finance Industry.

“With the introduction of a fast track authorisation process, successfully illustrated by the turnaround on the property fund, together with the existing experience and track record of the Island’s finance professionals working in the funds sector, Jersey intends to compete for a larger slice of the global funds market.”

The Expert Funds Guide, which was launched by the Commission in February, enables authorised functionaries in the Island, including administrators, fund managers and trustees, to self certify expert funds which meet criteria set down by the Commission in the Guide. There is no longer a requirement for a management company and, in the case of hedge funds, no requirement for a local custodian, provided the fund has an approved prime broker.

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