POLICY STATEMENTS AND GUIDANCE NOTES
Promoters of public and private collective investment funds
Which type of Funds does the Policy apply to?
The policy applies to both public and private collective investment funds.
The requirements imposed in this area upon certain types of funds are set out in classification guides published by the Jersey Financial Services Commission (the "Commission"). In these instances, the terms of the relevant guides will apply rather than the Policy.
Accordingly, the Policy does not apply to:
Who is a Promoter? TopA promoter will be identified by one, or all of the following:-
What is the Policy?TopThe Commission, when considering an application by a promoter, applies the following policy:-
The general policy of the Commission is to strengthen further the Island's reputation as a high quality and well regulated centre for the establishment and administration of collective investment funds.
When considering an application from a promoter, either under the Collective Investment Funds (Jersey) Law 1988 or under the Borrowing (Control) (Jersey) Law 1947, the Commission will have regard to:-
1. The type of investor to whom the fund will be offered TopInvestor protection is one of the primary reasons for this policy. The Commission's view of the promoter therefore will depend very much on the type of investor to which the fund is targeted. The more the fund is available for investment only by professional or institutional investors who have knowledge of the industry and have the experience and resources to look after themselves, the more the Commission might be inclined to take a relaxed view on stature.
Where the fund is more widely available, the Commission will look for greater stature.
For the purposes of this policy statement the remainder of the criteria will be considered at the two extremes under the headings:-
(1) "Very Private Funds" (that is closed ended with a high minimum subscription and offered to a restricted circle of professional or institutional investors) and
(2) "Very Public Funds" (being those more widely marketed).
However, it must be recognized that there are many variations lying between these two extremes.
Note 1 Top
There is no particular significance in the sequence in which the above aspects are listed. The Commission will take into account the appropriate balance of all aspects. If there is a deficiency against any one, it may be that this could be compensated for by strengths in relation to another. In general, it will be for the applicant to show why the promoter should be regarded as acceptable and to furnish documentary evidence in support. The Commission may also seek such evidence independently.
With regard to 1 above (type of investor) some of the ways in which the type of investor may be identified include:-
(a) the level of minimum investment required (although it is recognized that other factors, such as stock exchange listing requirements, may demand that this is kept lower than would otherwise be the case);
(b) the ability of the promoter to provide the Commission with a list of likely investors;
(c) the manner of any restrictions as to qualifications for investors (eg. US Accredited Investors);
(d) a clear statement in the prospectus that the fund is only being offered to professional and institutional investors;
(e) investment being by placement only and suitably appropriate selection criteria being a contractual obligation on the agent.