Jersey Enhances Fund Regime
Jersey has extended its funds regime through the introduction of the Private Placement Fund to widen the choice available to investors. Private Placement Funds are closed ended funds available to a limited number of sophisticated institutional or professional investors. Similar in scope to the existing COBO (Control of Borrowing Order) private funds, the new fund offering is designed for ‘fast track’ approval, usually within three business days.
Private Placement Funds will sit within the COBO framework and will complement the existing Expert Fund regime which also provides a streamlined approval process and has helped position Jersey as a leading European centre for alternative funds business.
Key features are:
- The fund is restricted to less than 50 sophisticated, professional investors
- It is closed ended and has a minimum investment or commitment level of £250,000 or currency equivalent
- A fast track approval process is available provided that the offer document conforms to the applicable content rules and sponsors meet the suitability requirements contained within the Private Placement Fund guide
- Each Fund requires a mandated licensed Jersey administrator approved by the Jersey Financial Services Commission
- The Offer Document is obliged to include an appropriate form of investor warning.
Jersey will continue to operate its COBO regime also for those specialist private funds which do not fall within the scope of the new Private Placement offer. The new Private Placement Fund is effective and available to investors from Thursday, January 26 2012.
