The following structures are available in Jersey for the establishment of funds:
- Unit Trusts
- Open Ended Investment Companies ('OEICS')
- Closed Ended Investment Companies
- Limited Partnerships
- Protected Cell Companies
From a regulatory point of view the above structures are regulated in Jersey depending on whether they are:
- Private funds
- Expert funds
- Public funds
Public funds are further categorized between:
- Recognized funds
- Regulated funds
Private funds are defined as those whose promotion is restricted to a limited circle of investors being less than 50 and whose shares/units are not to be listed on a Stock Exchange within a year of issue. Private funds do not fall within the definition of The Collective Investment Funds (Jersey) Law 1988 as amended and therefore, a fast track approval process is in operation for these types of funds with the Offering Document being the only document which has to be reviewed and lodged with the Regulator in Jersey.
Expert funds are defined as those targeted at sophisticated investors. Expert funds are not subject to the same level of regulation and follow a self certification process, which substantially reduces the time required to establish the fund. Those qualifying to invest in Expert Funds include:
- Professional and institutional investors
- Investors with a networth or a joint networth with a spouse above US $1million
- Investors making an investment of US $100,000 or more
Public funds are funds where an offer of shares is not restricted and are generally made available to the public at large.
Recognized funds are those which are approved by the Financial Services Authority for general marketing to the public in the United Kingdom. Recognized funds and their operators must comply with strict rules on the management and operation of the fund.
Regulated funds provide a flexible structure for fund promoters wishing to design a fund for a specific purpose. Investment restrictions can be set to meet the fund promoter's objectives.