On July 2, 2024, the Jersey Financial Services Commission (JFSC) published a revised JPF guide in conjunction with the Jersey Funds industry, bringing about several key updates.

The changes reflect the ever-evolving market in line with the success of the JPF regime since its launch in 2017. Some of the key changes include:

• Carry and Co-Investment Vehicles

  • Recognising the importance of co-investment in a fund's carry or incentive arrangements, the guide now offers greater flexibility for investment structures.

• Investor Eligibility

  • General Eligibility: Eligibility is now confirmed at the point of admission and remains valid despite changes in status, such as the departure of an employee, director, partner, or expert consultant.

  • Transfers: In cases where interest is transferred involuntarily (e.g., due to death or bankruptcy), the new holder must meet investor eligibility requirements, even if they do so through different criteria than the original holder.

  • Service Providers: The 'professional investor' category has been broadened. It replaces 'senior employee' with 'financially sophisticated employee' and includes 'expert consultant,' thus expanding the scope for who qualifies.

• Governing Body

  • The updated guidelines now require that at least one Jersey resident director be appointed to the board or governing body of a JPF. This update, a result of collaboration with key stakeholders, aims to enhance the regulatory framework, ensuring it remains current and supportive of the evolving fund industry landscape.

• Non-JPF Arrangements

  • Guidelines for arrangements not falling under the JPF category have been updated. This includes family and incentive structures, such as carry and co-investment vehicles. The definitions for employees and family connections have been broadened to cover trusts set up for individuals within the expanded 'family connection' definition.

• Additional Key Changes

  • Money Laundering and Outsourcing: The guide now includes references to the Money Laundering (Jersey) Order 2008 and the JFSC’s Outsourcing Policy.

  • DSP Regulation: Starting in July 2024, entities registered only for investment business under the Financial Services (Jersey) Law 1998 will no longer qualify as the DSP for a 'very private' JPF (with 15 or fewer offers/investors).

Read the revised JFSC JPF Guide > https://www.jerseyfsc.org/industry/guidance-and-policy/jersey-private-fund-guide/