Valsen Fiduciaries Funds

Jersey Private Fund

A JPF shall not be a collective investment fund (CIF) within the meaning of the Collective Investment Funds (Jersey) Law 1988, as amended (CIF Law). On this basis, any offer for subscription, sale or exchange of units of a JPF must be addressed exclusively to a “restricted circle of persons”3 so as to ensure that the offer does not in any way constitute an “offer to the public” within the meaning of Article 3 of the CIF Law.

About Jersey Private Fund

A JPF is a private investment fund involving the pooling of capital raised for the fund and which operates on the principle of risk spreading.

A JPF may be established in Jersey or in a country or territory outside of Jersey which requires a relevant consent to be issued and in which the number of offers of units for subscription, sale or exchange shall not exceed 50 and the number of investors shall not exceed 50, with each investor being a person:

  • Who is a professional investor
  • Who makes a minimum initial investment in or commitment to the JPF of not less than two hundred and fifty thousand pounds sterling (or the equivalent of that amount in another currency) either through an initial offering of units in the JPF or by subsequent acquisition;

Jersey Private 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

None

    • Minimum investors

50

  1. Directors / Partners / Trustees

    • Minimum number

2

    • Corporate Directors / Partners / Trustees allowed

No

    • Local Directors / Partners / Trustees required

No

  1. Fund functionaries required

Designated Service Providers (DSP)

JPF must appoint a “Designated Service Provider” and there may be no change to the DSP without the prior approval of the JFSC.
Eligible DSP The DSP must be an existing Jersey full substance entity
    • Custodian

      • Custodian required

No

      • Local custodian required

No

      • Eligible custodian

N/a

    • Fund manager / Investment Adviser

      • Fund manager required

No

      • Local fund manager required

No

      • Fund manager requires to be licensed

No

      • Eligible fund manager

N/a
    • 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. A company incorporated under the laws of a recognized jurisdiction.
    • External auditor

      • External auditor required

No

      • Local external auditor required

No

      • Eligible external auditor

There is no obligation under the JPF Guide for a JPF to appoint an auditor or audit its financial statements (although a JPF is free to appoint an auditor, if it so wishes).
  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

No

  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
JPF 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 JPFs in their entirety.
Stamp duty Act
JPFs are exempt from payment of stamp duty Tax
Trades Tax Act
JPFs are exempted
Immovable Property Transfer Restriction Act
JPFs are exempted
Immigration Decree
JPFs are exempted
Exchange Control Act
The provisions of the Exchange Control Act do not apply to JPFs.
Foreign Earnings Act
The Foreign Earnings Act is not applicable to JPFs in their entirety.

Benefits of a Jersey Private 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)
  • Is not required to appoint an auditor