The Jersey fund products that offer a lighter touch regulation
泽西岛更宽松的基金监管规定
Over the past few years, we have seen a shake-up of the funds industry both offshore and onshore in Asia – with some onshore jurisdictions offering up new and exciting fund products, such as Singapore's variable capital company (VCC) and Hong Kong SAR's open-ended fund company (OFC) as well as the limited partnership fund regime – to both rival and complement more traditional, established fund vehicles.
过去几年，我们看到亚洲的离岸和在岸基金行业发生了翻天覆地的变化。一些在岸司法管辖区正在推出令人兴奋的新基金产品，如新加坡的可变资本公司(VCC)、香港的开放式基金公司(OFC)以及有限合伙基金制度，这些与更为成熟的基金结构形成竞争，并相互补充。
Meanwhile, certain jurisdictions in the offshore world continue to upgrade their regulations to remain aligned with 'gold standard' international practices, including most recently with the Cayman Islands and the British Virgin Islands (BVI) bringing, for the first time ever, closed-ended funds into regulation.
There has been much discussion in Asia around the changing landscape for funds and an increase in competition between onshore and offshore fund products, and whilst we do not expect that the Cayman Islands will disappear from the world stage as the 'go-to' funds jurisdiction of choice, what has become clear is that fund managers, investors and advisers have more choice and options than ever before when it comes to both setting up their fund vehicle and selecting their jurisdiction of choice.
Amongst the options available, there is one jurisdiction that has been quietly growing in the fund space and that is worth paying attention to – and that is Jersey, in the Channel Islands. Jersey is home to the world's largest private equity fund and some of Europe's largest private equity, infrastructure, venture capital and private debt funds. With a long history in Asia for private wealth structuring for ultra-high net worth individuals and high net worth families, Jersey has been steadily gaining traction in the US and Asian markets. As at the end of June 2019, the fund assets serviced in Jersey rose to US$481.2 billion, up 17.1% from 2018, with private equity/venture capital and infrastructure funds remaining the most popular fund types.[1]
In 2017, Jersey overhauled its funds regime into a simplified framework offering various fund options and products on a sliding scale of regulation largely depending on the investor profile and where the fund is being marketed to. The options range from 'notification only' funds through to more regulated forms of fund structures. Jersey now stands as a serious contender in the funds space and contrary to some popular misconceptions, it offers products that have lighter regulation, lower costs and faster 'speed to market' than some of its offshore and onshore counterparts. All Jersey funds (other than 'notification only' funds) are also eligible to be marketed into the European Union and European Economic Area (EU/EEA) in accordance with the Alternative Investment Fund Managers Directive (AIFMD) through national private placement regimes and (once available) through the passporting regime.
Jersey offers a wide range of corporate or fund vehicles that are familiar, including companies, limited partnerships (including those with their own separate legal personality and LLPs), unit trusts, cell companies similar to the Cayman SPC and Singapore VCC and, soon to come, LLCs. Of the various fund products available, on the lightest end of the regulatory scale are (1) the Jersey Private Fund (one of the most popular fund vehicles) and (2) a 'notification only' fund (also known as an 'Eligible Investor Fund'). A summary of the key features of these funds is below.
Jersey Private Fund: Key Features
- Maximum of 50 investors at any time and a maximum of 50 initial offers.
- Must not be listed on a stock exchange. May be open or closed for redemptions by investors.
- Investors must qualify as ‘professional’ investors and/or subscribe for interests with a value of at least £250,000.
- No limit on fund size, no investment or borrowing restriction.
- A simple consent is required from the regulator, the Jersey Financial Services Commission (JFSC), under local legislation, which takes around 48 hours.
- A non-Jersey administrator can be appointed.
- No need to prepare a formal offering memorandum, but investors must sign a simple investment warning (usually included in the subscription document).
- No audit requirement.
- The fund is not regulated by the JFSC on an ongoing basis.
Some additional requirements apply if the fund is actively 'marketed' into the EU/EEA (as defined in the AIFMD), but it is possible to 'upgrade' a Jersey Private Fund so that it may be marketed into the EU/EEA at a later stage and that process is relatively straight forward and a well-trodden path.
Costs: As at the time of writing, the initial application fee charged by the JFSC for a Jersey private fund (without EU/EEA marketing) is £1,340 and the annual fee payable to the JFSC is £1,070.
'Notification Only' or 'Eligible Investor' Fund: Key Features
- Cannot be marketed in EU/EEA countries (but suitable for all other investors).
- Investors must be "Eligible Investors" only (any one of 11 categories, one of which is an investor of $1,000,000 or more).
- May be listed, provided that the exchange permits transfer restrictions (to ensure that only Eligible Investors are allowed to invest in the fund).
- May be open or closed for redemptions by investors.
- No limit on the number of investors, no investment or borrowing restrictions.
- No authorisation process (simply file a notice).
- A non-Jersey administrator can be appointed.
- No need to prepare a formal offering memorandum, but must obtain a written acknowledgement from each investor confirming their acceptance of the risks involved in the fund (typically dealt with in the application form).
- No audit requirement for limited partnerships and unit trusts.
- No ongoing regulation.
Costs: As at the time of writing, there is no notification or annual fee charged by the JFSC.
Other unregulated investment vehicles
Outside of the funds regime, an investment vehicle may not be required to be regulated at all in Jersey (which means lower costs and requirements). Investment vehicles that are not funds vehicles which hold a single asset or which carry on a business (such as property development) generally fall outside Jersey’s funds regulations. An investment vehicle will not be regulated as a fund in Jersey unless it is a scheme or arrangement for the investment of capital which (a) has as its object or one of its objects the collective investment of capital; and (b) operates on the principle of risk spreading, or units are to be bought back or redeemed continuously or in blocks at short intervals upon the request of the holder and out of the assets of the fund, or units will be issued continuously or in blocks at short intervals.
If you would like to find out more about any of the fund products available in Jersey, we would be happy to assist from our Singapore, Jersey or UK offices. Carey Olsen is recognised as the leading legal adviser to funds across the Channel Islands and is the largest law firm in Jersey with the busiest funds practice. Our full service Singapore and Hong Kong offices supply Asia-based clients with Mandarin, Cantonese and Bahasa language capability and on-the-ground legal advice on the laws of Bermuda, the BVI, the Cayman Islands and Jersey.
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[1] 25th annual Monterey Jersey Fund Report, 2020
An original version of this article was published by Asia Business Law Journal, November 2020.
© Carey Olsen 2020.
与此同时，一些离岸司法管辖区继续升级其监管规定，以便与国际通行的惯例和标准保持一致，包括首次将封闭式基金纳入监管范围的开曼群岛和英属维尔京群岛。
亚洲市场围绕不断变化的基金格局以及在岸和离岸基金产品之间的竞争加剧等话题展开了大量讨论。笔者虽不认为开曼群岛将就此掉出世界首选基金管辖区范围，但显而易见的是，基金经理、投资者和顾问在设立基金工具和选择管辖区时，比以往任何时候都有更多的选择。
在现有的选择中，有一个管辖区在基金领域一直在悄悄发展，值得关注，那便是海峡群岛中的泽西岛。泽西岛是世界上最大的私募股权基金和欧洲最大的私募股权、基础设施、风险资本和私人债务基金的所在地。在亚洲，泽西岛拥有为超高净值个人和高净值家庭构建私人财富的悠久历史，在美国和亚洲市场的吸引力也稳步上升。
根据2020年《第25届蒙特利泽西岛基金年度报告》，截至2019年6月底，在泽西岛运营的基金资产增至4812亿美元，较2018年增长17.1%，私募股权/风险资本和基础设施基金仍然是最受欢迎的基金类型。
2017年，泽西岛将其基金监管制度简化，向各种基金和产品提供浮动的监管范围，这在很大程度上取决于投资者的情况和基金的销售地点。选项范围包括“申报型”基金到监管更严格的基金结构。
目前，泽西岛是基金领域的重要竞争者，与一些流行的误解相反，它提供的产品比离岸和在岸同行提供的产品监管更宽松、成本更低、上市速度更快。除了申报型基金之外，根据《另类投资基金管理人指令》(AIFMD)，所有泽西岛基金均有资格通过国家私募制度和通行证制度(一旦可用)进入欧盟和欧洲经济区市场。
泽西岛提供各种常见的公司或基金形式，包括公司、有限合伙企业(包括具有独立法人资格的有限合伙企业和有限责任合伙企业)、单位信托、类似于开曼SPC和新加坡VCC的小公司，以及不久将出现的有限责任公司(LLC)。在各种可用的基金产品中，监管要求最低的是:(1)泽西岛私募基金(最受欢迎的基金工具之一)；(2)申报型基金，也称为合格投资者基金。这些基金的主要特点概述如下。
泽西岛私募基金
- 任何时候最多50个投资者，最多50个初始要约。
- 不得在证券交易所上市。投资者赎回可能开放或封闭。
- 投资者必须具备专业投资者的资格和/或认购价值至少250,000英镑(322,000美元)的权益。
- 不限制基金规模，不限制投资或借款。
- 根据当地法律，仅需获得监管机构泽西金融服务委员会(JFSC)的同意，大约需48小时。
- 可以任命一名非泽西岛管理人。
- 无需准备正式的发行备忘录，但投资者必须签署简单的投资警示(通常包含在认购文件中)。
- 无审计要求。
- 该基金不受JFSC的持续监管。
如果基金在欧盟/欧洲经济区积极销售(参考AIFMD定义)，则需要满足一些额外的要求，但有可能升级该基金使其稍后可以在欧盟/欧洲经济区销售，这一流程相对简单且成熟。
成本: 截至撰写本文时，JFSC对未在欧盟/欧洲经济区销售的泽西岛私募基金收取的初始申请费为1,340英镑，向JFSC支付的年费为1,070英镑。
申报型基金
- 不能在欧盟/欧洲经济区国家销售，但适合所有其他投资者。
- 投资者必须是符合条件的投资者(11个类别中的任何一个，其中一个是资产100万美元或以上的投资者)。
- 可以上市，前提是交易所允许转让限制，以确保只有符合条件的投资者才被允许投资该基金。
- 投资者赎回可能开放或封闭。
- 不限制投资者人数，不限制投资或借款。
- 没有审批程序，只需提交申报。
- 可以任命一名非泽西岛管理人。
- 无需准备正式的发行备忘录，但必须获得每个投资者的书面认可，确认他们接受基金中涉及的风险，通常在申请表中确认。
- 对于有限合伙企业和单位信托无审计要求。
- 无持续监管。
成本: 截至撰写本文时，JFSC不收取申报费或年费。
其他不受监管的工具
在基金制度之外，泽西岛对一些投资工具没有监管，这意味着成本和要求更低。比如，持有单一资产或开展房地产开发等业务的投资工具(非基金工具)通常不在泽西岛基金法规的监管范围内。
在泽西岛，除非投资工具是一种资本投资计划或安排，且符合以下条件，否则不会作为基金被监管: (1)以集体资本投资为其目标或目标之一；(2)按照风险分散的原则运作，或者根据持有人要求，从基金的资产中连续买回或赎回单位，或在短时间内分批买回或赎回单位，或连续或在短时间内分批发行单位。
