Jersey’s Funds Industry
The Island of Jersey has over four decades of experience in servicing the investment funds market. Its funds industry has witnessed significant recent growth and has doubled in size in the last ten years. Much of this growth can be attributed to the impact of Expert Funds, which were introduced in 2004 and provided a streamlined product for funds targeting expert investors. As at 30 June 2012, the combined value of Jersey’s funds was £189bn comprising 1,380 investment funds.
The establishment and operation of investment funds in Jersey is governed principally by two pieces of legislation, namely, the Control of Borrowing (Jersey) Law 1947 as amended, (the “Borrowing Law”) and the Collective Investment Funds (Jersey) Law 1988 as amended, (the “CIF Law”). Together the two statutes provide the framework for appropriate investor protection whilst retaining the flexibility to adapt quickly to changing market conditions.
Functionaries with a presence in Jersey, which provide services to both Jersey and non-Jersey domiciled investment funds are now regulated by the Financial Services (Jersey) Law 1998 (the “FSJL Law”). The regulation entails the registration of that fund services business for the provision of one or more class of fund services business. The relevant classes are listed within the FSJL and generally include principal functions, which are provided to fund structures.
Codes of Practice set out the principles and standards of conduct expected of persons registered under the FSJL for carrying on fund services business activities. Once registered for a specific class of fund services business, a fund services business can provide similar services to both Jersey domiciled and non-Jersey domiciled funds, but, in the case of the latter, must notify details of the non-domiciled fund(s) to the JFSC for record keeping and statistical purposes.
Responsibility for the administration of these Laws rests with the Jersey Financial Services Commission (the “JFSC”).
Volaw’s Fund Services
Volaw is fully regulated to undertake fund service business and is one of Jersey’s leading providers of fiduciary services, acting for individual, family, corporate and institutional clients. Volaw is closely associated with one of Jersey oldest law firms, Voisin, whose lawyers provide valuable support to our clients and the work we do. We pride ourselves on our innovative approach of which examples include establishing the first Jersey limited partnership to apply for and receive permits as a collective investment fund and the unique structures established to minimise US taxes on the real estate funds for Islamic investors.
We have established a specialist team in Jersey that is dedicated to looking after the affairs of the investment funds that are under our administration and our information technology systems allow us to maintain up-to-date and accurate statutory and accounting records of the funds in an efficient manner and to prepare reports on a regular or ad hoc basis. The team will work closely with the fund’s promoter and advisers throughout the fund establishment process and Volaw prides itself on its flexible and pro-active approach to ongoing fund administration services.
Our clients include investment and development property funds, private equity funds, hedge funds, equity funds and other alternative investment structures. These structures have been established as, or a combination of, Limited Partnerships, Unit Trusts, Companies, Incorporated Cell Companies and Protected Cell Companies.