Valsen Fiduciaries Funds

Jersey Eligible Investor Fund

A Jersey Eligible Investor Fund is an Alternative Investment Fund (AIF) as defined by the Alternative Investment Funds (Jersey) Regulations 2012 and is a collective investment fund that falls within Article 3 of the Law and which is established in Jersey.

About Jersey Eligible Investor Fund

Accounts Receivable service

Key Features of an Eligible Investor Fund;

  • Such funds may be open or closed-ended
  • The units of an Eligible Investor Fund may only be offered to Eligible Investors
  • The units may be listed, though only on exchanges or markets that permit transfer restrictions to ensure that only Eligible Investors may acquire the units

Eligible Investor ‘Definition’

  • Any person who agrees to invest not less than US$1,000,000, or the equivalent in another currency
  • A person whose ordinary business or professional activity includes or could be reasonably expected to
  • Include the acquisition, underwriting, management, holding or disposal of investments, whether as principal or agent or the giving of advice on investments and employees, directors or shareholders of or consultants
    to, such persons
  • A functionary in relation to the fund or an associate of such a functionary (eg the investment manager administrator, trustee etc.)
  • employees, directors or shareholders of, or consultants to, a functionary or associate, who in making the relevant subscription acquires units in the fund as remuneration, or reward, as such an employee, director or shareholder or consultant
  • An individual whose property has a total market value of not less US$10,000,000 or the equivalent in another currency
  • A company, partnership, limited partnership or limited liability partnership, trust, or unincorporated association, which owns property with a total market value of not less than US$10,000,000 or the equivalent in another currency or every shareholder of the company, every partner of the partnership, limited partnership or limited liability partnership, every beneficiary of the trust or every member of the association (as the case requires) is, himself or herself, an Eligible Investor
  • A wholly-owned subsidiary of a company specified above
  • Trustees of certain trusts established for the benefit of an Eligible Investor
  • A person acting as or for a public sector body

Jersey Eligible Investor Fund Legal Requirements

Requirements

Description

  1. Applicable legislation

Collective Investment Funds (Jersey) Law 1988

  1. Supervising Authority

Financial Service Commission

  1. Corporate vehicle permitted

State the legal form of the fund,

Company;

Partnership; or

Unit Trust;

Any other similar body formed under the laws of Jersey or any other jurisdiction which collects and pools investor funds for the purpose of collective investment.

  1. Share capital or equivalent

    • Minimum subscription

USD 1 Million

    • Minimum investors

None

  1. Directors / Partners / Trustees

    • Minimum number

2

    • Corporate Directors / Partners / Trustees allowed

No

    • Local Directors / Partners / Trustees required

No

  1. Fund functionaries required

    • Custodian

      • Custodian required

Yes

      • Local custodian required

Yes

      • Eligible custodian

A company which is a member of a major banking or insurance group of companies.

Any other institution which is acceptable to the Commission

    • Fund manager / Investment Adviser

      • Fund manager required

Yes

      • Local fund manager required

Yes

      • Fund manager requires to be licensed

Yes

      • Eligible fund manager

The manager shall be a company incorporated and resident in Jersey

    • Fund administrator

      • Fund administrator required

Yes

      • Local fund administrator required

No

      • Eligible fund administrator

The Administrator shall be a company incorporated and resident in Jersey

    • External auditor

      • External auditor required

Yes

      • Local external auditor required

No

      • Eligible external auditor

A person or partnership qualified in accordance with the Companies (Jersey) Law 1991 or any legislation made under that law relating to the appointment of an auditor of a Jersey company.

A person or firm otherwise acceptable to the Commission

  1. Asset Requirements

    • Restriction on type of asset class invested

None

    • Asset diversification requirements

None

    • Limitation on size of the fund or total assets under management

None

  1. Local physical office required

Yes

  1. Prospectus / Offering Memorandum required to be filed

Yes

  1. Eligible for listing

Yes

  1. License fees

    • License application fee

USD 2,235

    • Annual license fee

USD 2,235

  1. Estimated license processing duration

3 months

Ongoing Obligations

Requirements Description
Monthly obligations
None
Quarterly obligations
None
Annual obligations
Maintain such accounting records and financial statements available for examination by the Registrar or any person authorized under his hand at its principal place of business or registered office in Jersey;
Other obligations

Notify Minister within a reasonable period of any of the following changes:

Changes in any Key Functionary in the Fund.

Change in the registered office address

Change of its agent in Jersey

Change in name or address of-

  • each director of the fund, if the fund is a company
  • each trustee of the fund, if the fund is a trust
  • each general partner of the fund, if the fund is a limited partnership.

Appointment, resignation or removal of a Director or officer

Tax Obligations and Other Exemptions
Requirements Description
Business Tax
Jersey Eligible Investor Fund are exempt from business tax.
Withholding Tax
No withholding tax is payable on dividends and/or interest payable.
Value Added Tax (VAT)
VAT is not applicable to Jersey Eligible Investor Fund in its entirety.
Stamp duty Act
Jersey Eligible Investor Fund are exempt from payment of stamp duty Tax
Trades Tax Act
Jersey Eligible Investor Fund are exempted
Immovable Property Transfer Restriction Act
Jersey Eligible Investor Fund are exempted
Immigration Decree
Jersey Eligible Investor Fund are exempted
Exchange Control Act
The provisions of the Exchange Control Act do not apply to Jersey Eligible Investor Fund.
Foreign Earnings Act
The Foreign Earnings Act is not applicable to Jersey Eligible Investor Fund in its entirety.

Benefits of a Jersey Eligible Investor Fund:

  • can be established as a Jersey company (including a protected cell company, an incorporated cell company or any cell thereof), limited partnership (LP), limited liability partnership (LLP), separate limited partnership (SLP), incorporated limited partnership (ILP), or unit trust
  • can also be established as virtually any non-Jersey structure so long as a COBO consent is required
  • is not required to appoint any Jersey-resident directors (or Jersey-resident GP or trustee directors, as appropriate)