Jersey is a major international finance centre and has more than 50 years' experience in structuring, managing and administering funds. It is one of the premier offshore jurisdictions for the establishment of investment funds and other investment structures. 

Jersey offers an attractive combination of stability, effective but proportionate regulation, and tax neutrality. Jersey is also highly regarded for its exceptionally high standards of service and governance, and the quality of its legal, administrative and other service providers. 

Alternative investment funds activity forms a significant part of Jersey's finance industry and a range of products and structures is available to suit all types of investor and promoter.

Although all types of funds are established in Jersey, in more recent years it has built a leading reputation as a specialist centre for alternative asset classes ‒ in particular, private equity, real estate, debt, infrastructure and hedge funds. Alternative funds currently account for just under 85% of Jersey's overall funds business. 

Alternative investment funds are generally formed as limited partnerships, companies (including cellular companies) or unit trusts, or some combination of these.

Private equity and infrastructure funds are typically established as Jersey limited partnerships ‒ often with a Jersey company as the general partner or, alternatively, a Jersey limited partnership acting as a general partnership/limited partnership (GPLP).

Real estate funds are often structured as Jersey companies or Jersey unit trusts, but may also be structured as limited partnerships.

Hedge funds tend to be structured as Jersey companies or unit trusts.

There is no typical structure used for debt funds. They may be structured as Jersey companies, unit trusts or limited partnerships, depending on what best suits the fund's intended characteristics.

Jersey's regulator, the Jersey Financial Services Commission (JFSC), has a strong international reputation as a reliable, effective and proportionate regulator.

The regulatory regime for alternative funds in Jersey aims to meet all relevant international standards and provide simplicity and certainty, while also allowing for flexibility. The regime provides a variety of options for alternative funds, allowing for investment and operational flexibility, and avoiding any need for complex tax structuring. 

The main regulatory distinction for Jersey alternative funds is between those categorised as "private funds" (50 or fewer investors) and those categorised as "public funds" (more than 50 investors). There are then different "product classifications" of public funds. A separate regime also exists for non-fund investment vehicles, which often form part of alternative investment structuring.

Private Funds

All private funds are subject to the regime set out in the Jersey Private Fund Guide issued by the JFSC, which includes "fast-track" approval via a self-certification process led by the fund administrator.

The Jersey private funds regime can accommodate vehicles formed for a small number of co-investors (including "club" arrangements), as well as funds marketed to a wider group (typically by private placement) of up to a maximum of 50 investors. 

There is considerable flexibility in the way such funds can be structured and operated. 

Jersey private funds can be established as any type of vehicle (companies, partnerships, unit trusts), as Jersey or non-Jersey vehicles (eg, as an English limited partnership for which a Jersey company acts as general partner), and can be closed-end or open-end funds. 

No offering document is required, but one may be produced if desired. An investment warning must be provided to and acknowledged by investors (typically in subscription documentation). 

There are no restrictions on investment or borrowing, a Jersey-based governing body is not required, and audited accounts are not required. 

A Jersey private fund cannot be listed on a stock exchange.

Non-fund Investment Vehicles

The scope of Jersey's regulatory regime is such that certain investment vehicles fall outside the scope of funds regulation, allowing them to be established as non-fund investment vehicles. Application must be made to the JFSC to establish such vehicles, as is the case for all incorporations in Jersey. Information must be provided on the activities of the vehicles and their beneficial ownership, but they are not subject to active ongoing regulatory supervision. Such vehicles can include proprietary or holding vehicles, joint ventures or securitisation vehicles. Family arrangements and employee incentive arrangements are also outside the scope of the funds regime.

Public Funds

Public funds are typically used where more than 50 investors are anticipated. The regulatory regime for public funds is subdivided into various classifications, ranging from those that are lightly regulated to those that are highly regulated, as described below.

Notification-only Eligible Investor Funds

Notification-only eligible investor funds (EIFs) are funds that would be categorised and regulated as public funds, apart from the fact that they fall entirely outside the regulatory regime applicable to public funds on the basis that they are reserved for "eligible investors" – that is, those who agree to contribute not less than USD1 million, or its currency equivalent, for securities in the fund. 

Prior approval from the JFSC is not required in respect of notification-only EIFs, with the JFSC requiring only notification of the establishment of the fund.

Such funds may be open- or closed-end and may be structured as a Jersey company, a Jersey registered limited partnership or a unit trust. There are no requirements to appoint a Jersey-based manager or administrator, or Jersey-resident directors. 

Except in the case of general partners of Jersey limited partnerships or trustees of Jersey unit trusts, any Jersey-resident services provider to the fund must be licensed by the JFSC to conduct fund services business in relation to the fund. There is no requirement to appoint a custodian in relation to the assets of a notification-only EIF.

The offering document must contain a prescribed investment warning to investors, but no other disclosure is required. 

As this type of fund is not subject to the prior approval of the JFSC, the offering of securities in the fund may commence immediately upon the execution of the fund documents. The timing of the launch of the fund is, therefore, entirely in the hands of the fund's sponsor. 

Notification-only EIFs are not compliant with the Alternative Investment Fund Managers Directive (AIFMD). As such, they avoid the regulatory overlay imposed by AIFMD compliance, but cannot be marketed to investors in the EU.

Jersey eligible investor funds

A Jersey EIF is one that complies with the requirements of the Jersey Eligible Investor Fund Guide issued by the JFSC. 

Jersey EIFs can only be marketed to "eligible investors". Among other things, this includes any person committed to investing at least USD1 million (or its currency equivalent) in the fund. 

Jersey EIFs are regulated by the JFSC, but are subject to fewer constraints than other regulated public funds.

There are limited disclosure requirements in respect of offering documents and Jersey EIFs are established on the basis of "self-certification" by the Jersey-based administrator or manager (the "monitoring service provider") that the fund qualifies as a Jersey EIF. 

The monitoring service provider will be responsible for monitoring the fund's compliance with the requirements of the Jersey Eligible Investor Fund Guide and the fund's investment and borrowing restrictions. 

Expert funds

An expert fund is one that complies with the requirements of the Jersey Expert Fund Guide issued by the JFSC.

An expert fund can only be marketed to "expert investors". Among other things, this includes any person committing to invest at least USD100,000 (or its currency equivalent) in the fund. 

Expert funds are regulated by the JFSC, but are subject to fewer constraints than unclassified collective investment funds. 

There are limited disclosure requirements for expert fund offering documents and they are also subject to "self-certification" by the Jersey-based administrator or manager (the monitoring service provider) that the fund qualifies as an expert fund. 

The monitoring service provider is responsible for monitoring the fund's compliance with the requirements of the Jersey Expert Fund Guide and the fund's investment and borrowing restrictions. 

Listed funds

A listed fund is one that complies with the requirements of the Jersey Listed Fund Guide issued by the JFSC. 

The fund must be a closed-end corporate fund, listed on one of the recognised stock exchanges or markets set out in the Jersey Listed Fund Guide. 

Unlike expert funds, there are no investor-eligibility criteria attached to listed funds, but they are otherwise identical to expert funds in terms of structural requirements. 

Listed funds are regulated but are subject to fewer constraints than unclassified collective investment funds.

Unclassified collective investment funds

Where a public fund does not qualify under one of the other regulatory classifications for public funds (as described here), the fund will be subject to standard supervision by the JFSC.

This means that, at the time of application for regulatory approval, the JFSC will undertake a detailed assessment of the suitability of both: 

• the promoter/sponsor (regulatory history, experience, financial standing); and 
• the fund itself (constitutional documents, fund rules and material agreements).

Unclassified collective investment funds are also subject to additional ongoing obligations in terms of JFSC notifications and consents. There may be no material change to the fund or its constitutive documents or material agreements without the prior consent of the JFSC, for example. 

Jersey Private and Public Funds Marketed in the EU

Private funds

Jersey private funds to which the AIFMD regime applies and which are to be marketed to investors in the EU (via the national private placement regimes) must, in addition to the usual regulatory approval required by Jersey private funds, seek an AIFMD-specific approval from the JFSC, which takes ten days.

Public funds

Jersey public funds to which the AIFMD regime applies and which are marketed to investors in the EU (via the national private placement regimes) are exempt from the requirement to seek an AIFMD-specific approval from the JFSC on the basis that, as a public fund, they are already regulated by the JFSC to the required standard. 

Jersey funds can originate loans, without any restrictions.

There are generally no restrictions on the assets that a Jersey fund may invest in, which may include digital assets, consumer credit (and other loan portfolios), cannabis/cannabis-related investments and litigation funding. A number of Jersey funds invest in these and other non-traditional assets, such as works of art, classic cars or fine wines. 

Digital Assets

The JFSC authorised the world's first regulated Bitcoin investment fund. Early on, the JFSC identified that involvement in initial coin offerings or crypto-exchanges – or providing other services related to cryptocurrencies ‒ presented both opportunity and risk to managers, investors and service providers. Accordingly, a specific set of regulatory rules in relation to cryptocurrencies has been developed in order to provide a well-regulated environment and offer quality assurance both for managers and investors. 

Pursuant to the policy, the JFSC will seek to fully understand any risk factors associated with a fund involved with cryptocurrencies and will undertake a process of assessment before the fund can be established.

Cannabis

The law in Jersey was changed in 2021 so that returns from cannabis-related investments are explicitly excluded from being regarded as proceeds of crime for Jersey AML purposes. The exclusion only applies if the relevant cannabis-related activity is legal in the country where it is taking place and that country is on a published list of countries that Jersey has identified as applying suitably equivalent money-laundering controls to Jersey. 

Cannabis-related activity, which includes the cultivation, production, supply, use, export or import of cannabis or any of its derivatives, is regarded as a sensitive activity by the JFSC – it is considered likely to pose a potential reputational risk to Jersey.

However, following the legislative change referred to above, the JFSC has indicated that – in cases where the exclusion applies – the fact that a fund is investing in cannabis or cannabis-related activity will not hold up the granting of the necessary regulatory approval. 

Jersey's most commonly used fund products are those targeted at professional or experienced investors, or those who have invested with the benefit of professional advice. For those types of funds, the JFSC applies a streamlined regulatory approval process. For Jersey private funds, the application timescale is two working days. 

For most public funds (ie, expert funds, listed funds and eligible investor funds), the timescale is three working days. For unclassified collective investment funds, the regulatory approval timescale is 20 working days.

Where an AIFMD-specific approval is also required from the JFSC (see 2.3 Regulatory Regime), the timescale for that approval is five working days.

In the case of a notification-only EIF, no regulatory approval is required.

There is no requirement for a Jersey investment manager to be appointed to a Jersey fund.

Private Funds

For Jersey private funds there is no requirement for the fund's governing body to have Jersey-resident directors. That said, the JFSC would ordinarily expect, in the majority of cases, for one or more Jersey-resident directors to be appointed. Where the fund is marketed in the EU, there may be a requirement to have Jersey-resident directors in some instances.

Public Funds

For most public funds, the fund's governing body must have at least two Jersey-resident directors. If the fund is structured as a limited partnership it must have a Jersey-based general partner. If it is structured as a unit trust, it must have a Jersey-based trustee.

Self-Managed Funds

Jersey funds that are self-managed (ie, no separate investment manager is appointed) are subject to Jersey's economic substance requirements. Staff and physical premises form a part of those requirements, but the rules allow for this substance to be provided by a local corporate services provider. Otherwise, there is no requirement to maintain local premises or hire local employees.

All Jersey funds require the appointment of a Jersey-based administrator and a compliance officer, AML compliance officer and AML reporting officer (usually provided by the fund administrator).

A Jersey-based custodian is required for all open-end Jersey public funds. Jersey private funds are excluded from this requirement.

Non-Jersey fund service providers appointed by Jersey funds are generally not subject to any Jersey regulatory requirements. The Jersey regulatory regime only seeks to regulate service providers that are either incorporated in Jersey or provide their services in or from within Jersey.       

Promoters of, and investment managers appointed to, Jersey funds are expected to meet certain minimum suitability criteria – for example, an investment manager should have a clean track record in terms of having had no disciplinary sanctions or relevant convictions.

For Jersey private funds, no approval of the promoter/sponsor of the fund is required, but the "designated service provider" to a Jersey private fund (in practice, the administrator of the fund) is required to undertake due diligence on the promoter/sponsor. 

For most public funds (expert funds, listed funds and eligible investor funds), the investment manager must be: 

• based in an OECD member state; or
• in another state where a memorandum of understanding or similar has been entered into with the JFSC.

In addition, where required, the investment manager must be:

• regulated in their home jurisdiction (if such regulation is required in that jurisdiction); or 
• approved by the JFSC (which in normal circumstances is given quickly). 

For public funds offered to the general public, the promoter/sponsor needs to be approved by the JFSC based on considerations such as track record, reputation and financial resources.

Investment Funds

Jersey offers tax neutrality for funds, without any necessity for complex tax structuring. All types of investment funds established in Jersey can benefit from the absence of any Jersey income tax on non-Jersey source investment income and profits.

Corporate Tax

Jersey has a general zero corporate tax rate for funds. As a result, funds established as companies will pay no Jersey income tax and there is no requirement to withhold tax on interest or dividends payable by such corporate funds.

Unit Trusts

In relation to unit trusts established in Jersey, no Jersey income tax is raised in respect of investment income or profits arising from non-Jersey sources or from bank deposits held by such unit trusts in Jersey.

Limited Partnerships

Limited partnerships are tax-transparent vehicles and are not, therefore, subject to Jersey income tax. Non-Jersey resident investors in a Jersey limited partnership do not pay any Jersey tax in respect of non-Jersey source investment income or profits, or in respect of interest on bank deposits held by the partnership in Jersey.

Jersey's tax-neutral environment (see 2.11 Tax Regime) does not rely on tax rulings, exemptions and deductions, hybrid financing or double-tax agreement (DTA) networks.

However, Jersey has entered into approximately 15 full double-tax agreement with other countries and 12 partial double-tax agreements.

It is very common for Jersey funds to use subsidiaries for investment purposes. Investments are often held in separate SPV subsidiaries in order to:

• ring-fence the risks of an investment from the fund, and from other investments made by the fund;
• make sales and transfers of investments easier, and potentially more tax-efficient; and
• facilitate the use of secured third-party finance (eg, shares in the SPV can be provided as security).

Promoters/sponsors from around the world use Jersey as a centre for alternative investment funds. 

Often, the promoters/sponsors of Jersey funds are based in jurisdictions such as the UK, mainland Europe, the Nordic countries, the Middle East and Far East, as well as the USA.

Jersey funds can work well for investors from many jurisdictions. Often the investors in Jersey funds are based in the same jurisdictions as mentioned for promoters/sponsors in 2.14 Origin of Promoters/Sponsors of Alternative Funds.

Jersey's alternative funds industry is evolving to respond to international trends. Headline trends for Jersey alternative funds are listed below.

Growth

The international growth of the alternative investment sector is reflected in Jersey, where assets under administration continue to increase.

ESG

ESG considerations are increasingly important. Jersey has been a leader as a governance jurisdiction, and is responding to the demand for the triumvirate of ESG with new and better-defined service offerings that deliver ESG reporting to meet the demands of managers and investors.

Dealing with Complexity

Fund structures are becoming increasingly tailored to the specific requirements of fund promoters and investors, and are being adapted to respond to the increasingly complex international tax, compliance and reporting environment. Jersey's ability to deal with complexity is one of its strengths.

Transparency

There is a focus on transparency both from managers and investors, and for regulatory and tax purposes. As a stable jurisdiction that follows international standards, transparency is a key part of Jersey's alternative funds environment.

Technology

As funds and reporting have become increasingly complex, technology and digitisation have come to the fore. Many service providers now offer technology-based solutions, including automation and web-based platforms.

Change and Adaptation

Reflecting all of the above-mentioned trends, legal, regulatory and operational innovation continues, with laws, regulations, structures and service offerings being adapted to respond to market needs. 

Different levels of disclosure to investors and reporting to the local regulator (the JFSC) apply, depending on the level of regulation of the fund.

Private Funds

For private funds, there is a mandatory investment warning and disclosure statement, which corresponds to the nature of the fund product as one that is lightly regulated and not suitable for retail investors. There is no requirement for any other disclosure to investors; however, if an offering document is published, a minimum standard applies.

Any offering document must contain all of the material information that investors and their professional advisers (if any) would reasonably require – and would reasonably expect to find or to have brought fairly to their attention ‒ for the purpose of making an informed judgement about the merits of investing and the nature and level of risk accepted by making an investment.

In terms of reporting to the regulator, the focus is on statistical reporting, along with fundamental requirements concerning AML regulation, disclosure of ownership and tax reporting. The regulatory framework for fund service providers also imposes obligations to notify the regulator in certain circumstances.

Fund documents and reports are generally not available to the public. The audited accounts of a private fund structured as a Jersey public company are publicly available from the JFSC's website for a small fee. 

Public Funds

For public funds, certain products have higher reporting requirements, and in some instances require regulatory approval in respect of material changes to the fund. The requirements depend on the nature of the product ‒ for example, expert funds require notification of certain matters, whereas public funds offered to the general public have stricter requirements, including certain requirements for regulatory pre-approval.

A public fund must issue a prospectus and mandatory content requirements are set out in the applicable legislation. These include certain prescribed investment warnings and disclosure statements that correspond to the relevant public fund product (see 2.3 Funds: Regulatory Regime for product-specific requirements).

Fund documents and reports are generally not available to the public. The audited accounts of a public fund structured as a Jersey company are publicly available from the JFSC's website for a small fee. 

International Requirements

As a responsible international finance centre, Jersey follows international rules. A number of international initiatives that have cross-border impact (eg, Foreign Account Tax Compliance Act (FATCA), Common Reporting Standard (CRS), AIFMD) also have reporting requirements. Jersey funds that are marketed in the EU under the national private placement regime, for example, must follow the AIFMD Article 42 transparency reporting requirements (ie, annual reports, pre-investment disclosure and regulatory reporting on liquidity, risk management and leverage).

Beneficial Ownership

All Jersey entities with separate legal personality are under a statutory obligation to provide beneficial ownership information on a confidential basis to the JFSC. The relevant statutory provisions were enacted in order to address Recommendation 24 of the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation, issued by the Financial Action Task Force.

Any anticipated changes are referred to in the previous sections.

Fund managers based in Jersey tend to structure themselves as Jersey companies or, less commonly, as limited partnerships or LLPs.

A number of Jersey funds are "self-managed" funds, with investment advisory services being provided to the fund from outside Jersey.

Managers of Private Funds

Jersey-based managers of Jersey private funds are often exempt from the need to be regulated in respect of their services to the fund, on the basis of statutory exemptions for funds where access is restricted to "professional investors".

However, where a Jersey-based manager acts as an alternative investment fund manager for a Jersey private fund that is marketed in the EU as an alternative investment fund (AIF), the manager must be approved by the JFSC. Alternatively, if the assets under management of the AIF exceed EUR500 million (or EUR100 million where the AIF uses leveraging), the manager must be licensed by the JFSC as a "manager of an AIF" and will be subject to additional AIFMD-specific regulatory requirements.

Managers of Public Funds

Jersey-based managers of public funds are required to hold a fund services business licence from the JFSC (see 3.7 Local Substance Requirements). 

Jersey-based managers of public funds that are marketed in the EU are exempt from any additional AIFMD-specific JFSC approvals on the basis that they are already regulated by the JFSC for fund services business. They will, however, be subject to additional AIFMD-specific regulatory requirements.

Fund managers that are incorporated or tax-resident in Jersey are subject to a zero corporate tax rate. For individuals who are tax-resident in Jersey, there are low personal income tax rates (20%) and no capital or inheritance taxes.

Non-Jersey incorporated companies (including funds or fund managers) could become tax-resident in Jersey if they are "managed and controlled" in Jersey, but a zero corporate tax rate applies in respect of funds and fund management activity, so there should be no tax payable in Jersey.

Accordingly, a fund ‒ whether established in Jersey or in another jurisdiction – will not become liable to pay Jersey taxation simply by virtue of having appointed a Jersey-based manager, irrespective of whether the manager has a "permanent establishment" in Jersey. 

Jersey applies the same principles of management and control as those applied in the UK, whereby an entity's central management and control is broadly determined by the location where high-level strategic decisions of the company are made. 

A Jersey-based management entity will not pay tax in Jersey, whether in respect of investment management fee income or carried interest.

A Jersey-based manager can outsource its investment functions and business operations, provided that the outsourcing complies with the JFSC's Outsourcing Policy. That policy is based on the fundamental premises that:

• the manager remains fully responsible and accountable to the JFSC for any outsourced activity to the same extent as if the outsourced activities were not outsourced; and
• a manager must not, as a consequence of any outsourcing arrangements, become devoid of functions to the extent that it becomes a “letter box” entity.

The JFSC does not expect a fund manager outsourcing to an investment manager to comply with the Outsourcing Policy if:

• the identity of the investment manager is clearly disclosed in advance to the JFSC and the fund’s investors in an offer document; and
• any change to the investment manager is notified to investors (where investor consent for such a change is not required).

The disclosure must make the following clear and unequivocal, in a manner that is suitable to the level of the fund’s investors’ financial sophistication:

• the nature of any activity to be undertaken by the investment manager;
• any material risks connected with the activity (including any conflicts of interest); and
• where the fund’s investors should deal directly with the investment manager in respect of the activities they carry out.

A Jersey-based manager to Jersey private funds is subject to Jersey's economic substance requirements, but the rules allow for this substance to be provided by a local corporate services provider and there are no regulatory-driven substance rules that apply.

A Jersey-based fund manager that requires a licence from the JFSC (ie, where it is acting as a manager of public funds) may either be established with a "full presence" or, quite commonly, as a "managed entity".

A full-presence manager will need to have fully staffed premises of its own in Jersey, whereas a managed entity will operate in Jersey using the services of an administrative service provider that is physically located in Jersey and has been licensed by the JFSC to act in the capacity of manager of a managed entity.

In either case, the manager must maintain and be able to demonstrate the existence of both adequate financial resources and adequate insurance. Typically, this means having:

• paid-up share capital and non-distributable reserves;
• a minimum net assets position of not less than GBP25,000; and
• professional indemnity insurance (PII) extended to include fidelity guarantee insurance and directors' and officers' insurance.

Non-Jersey fund managers appointed by Jersey funds are generally not subject to any Jersey regulatory requirements. The Jersey regulatory regime only seeks to regulate service providers that are either incorporated in Jersey or provide their services in, or from within, Jersey.

Jersey funds are popular with many types of investors who typically invest in alternative funds, including:

• pension funds;
• insurance companies;
• sovereign wealth funds;
• family offices;
• funds of funds;
• eligible high net worth individuals; and
• professional investors.

A number of Jersey's fund products (eg, Jersey private funds, expert funds) are intended to be available only to professional or expert investors. Those products, and equivalent non-Jersey funds, may only be marketed in Jersey to:

• the appropriate class of professional or experienced investor; or
• those who have taken appropriate professional advice.

Funds designed to be marketed to the general public may be marketed to the general public in Jersey, but non-Jersey funds may need to apply for regulatory consent in Jersey prior to commencing marketing in Jersey.

The consent of the JFSC may be required in order to market a non-Jersey alternative fund in Jersey. If so, the JFSC will want to satisfy itself that the fund and all other entities associated with the offer are acceptable to the JFSC.

The JFSC will require that the offering document meets generally accepted international practices in providing information to prospective investors.

The JFSC's consent is not required if:

• the fund and its promoter have no relevant connection with Jersey ("relevant connection" includes where the fund or associated entity is managed from or administered in Jersey); and
• the offer is:
1. made in the following circumstances:
1. to an identifiable category of persons;
2. where the promoter reasonably believes the prospective investors have sufficient information to be able to understand the offer; and
3. to fewer than 50 persons in Jersey; or
2. valid in the UK or Guernsey, and is being circulated in Jersey in the same way ‒ and to similar persons – as it is being circulated in the UK or Guernsey.

Jersey-based investors can invest in alternative funds established in Jersey in exactly the same way as non-Jersey investors.

There may be an obligation to obtain the consent of the JFSC before marketing a non-Jersey alternative fund in Jersey (see 4.3 Rules Concerning Marketing of Alternative Funds).

There are no particular disclosure requirements with respect to Jersey investors. The expectation is that any offering document should meet generally accepted international practices in providing information to prospective investors.

In overview, individuals in Jersey generally pay tax at the rate of 20%, whereas most corporates pay tax at the rate of 0%. The Jersey tax regime does not confer any different treatment on Jersey tax-resident companies or individuals that invest in alternatives. 

The USA has developed an intergovernmental approach to the implementation of FATCA. On 13 December 2013, Jersey and the USA signed an agreement to improve international tax compliance and to implement FATCA. The terms of the agreement were implemented in Jersey by local regulation that came into force on 18 June 2014.

Jersey has also signed, along with more than 100 other countries, a multilateral competent authority agreement to implement the OECD Standard for Automatic Exchange of Financial Account Information – the Common Reporting Standard (CRS).

The local regulations implementing the CRS in Jersey came into force on 1 January 2016. 

All Jersey "Financial Institutions" are required to comply with the registration, due diligence and reporting requirements of the FATCA and CRS regulations, unless they have an exemption that allows them to become a "non-reporting financial institution".

Most Jersey funds do not have any reporting exemption and therefore comply with the requirements of the local FATCA and CRS regulations. 

Those regulations require a Jersey fund to, among other things: 

• register with the Internal Revenue Service (IRS) to obtain a Global Intermediary Identification Number (GIIN) (in the context of FATCA only); 
• register with and notify the Comptroller of Revenue in Jersey of the fund's status as a "Reporting Financial Institution"; 
• conduct due diligence on its accounts to identify whether any such accounts are considered "reportable accounts"; and 
• report information on such reportable accounts to the Comptroller of Revenue in Jersey. 

The Comptroller of Revenue in Jersey will transmit the information reported to it to the overseas fiscal authority relevant to a reportable account (ie, the IRS in the case of a US reportable account, HMRC in the case of a UK reportable account, etc) annually on an automatic basis.