An introduction to Jersey Very Private Funds

**UPDATE: Please note that this regime has now been replaced by the newer Jersey Private Fund regime**

 

The Jersey Very Private Fund (VPF) regime provides a highly flexible solution for small groups of investors. These funds are governed by policy rather than statute and so can be structured or operated in a number of ways.

VPFs must limit the number of offers to investors to 15 and must be organised on a private placement or private subscription basis so there can be no general marketing or public offering of the fund. VPFs cannot be listed but can be either open-ended or closed-ended.

Although there is no minimum subscription per investor, a limit of £250,000 or above is usually applied in order to take advantage of exemptions which are available to those service providers appointed to act for the fund, e.g. the investment advisor. 

VPFs can be established within five working days, subject to disclosure of certain basic information to the Jersey Financial Services Commission (JFSC). There are no statutory fees.

Regulation

VPFs are treated similarly to joint venture companies and are subject to lighter touch regulation by the JFSC.

Key features

  • No requirement for JFSC registration to conduct fund services business
  • JFSC Codes of Practice do not apply
  • JFSC's promoter policy does not apply
  • JFSC registration to conduct investment business or trust company business may be required, or a relevant exemption sought 
  • COBO consent(s) are required for the raising of money, issuing of securities or registration of securities in Jersey
  • No need to apply for 'in principle' consent
  • The necessary COBO consent will be issued on an expedited basis, without the JFSC reviewing documentation. A letter of request stating all initial investors is all that is required
  • No CIFL fund certificates required

Expect Moore

If you would like to discuss VPFs with us, please get in touch with Andrew Maiden.

E: andrew.maiden@mooremanagement.com
T: +44 1481 231 868

 

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