Jersey: Offering Certainty and Clarity for Funds

Jersey continues to strengthen its position as a leading jurisdiction for private fund structures, offering certainty, flexibility, and cost efficiency. With robust regulation aligned with international standards, Jersey provides an attractive alternative to other domiciles such as the Cayman Islands. Its pragmatic and adaptive regulatory framework ensures Jersey remains a future-proof and stable choice for fund managers operating in an increasingly complex global environment.

9 June 2023

Why Choose Jersey?

Cost-effective, streamlined fund formation
Fast-track regulatory approval via the Jersey Private Fund (JPF) regime
Strong track record of compliance with international standards (OECD, FATF, MONEYVAL)
Direct access to European investors
Globally respected legal and regulatory infrastructure
Jersey Private Fund (JPF) – Key Updates from 6 August 2025

The JPF Order and the updated JPF Guide come into effect on 6 August 2025 and will automatically apply to new JPFs from this date.

JPF Highlights

Fast-track approval within 24 hours
No offer/investor cap
No mandatory audit requirement (subject to constitutional documents and investor agreement)
No requirement for Jersey-resident directors, but expectation remains that at least one Jersey resident director is appointed
A JPF may be listed with the consent of the JFSC
The JPF Guide has been updated to widen the categories of investors that will be eligible to invest in a JPF
Required appointment of a Designated Service Provider (DSP)
Alignment with Jersey’s high standards for AML/CFT compliance

Private Funds

Jersey

A Jersey Private Fund (JPF) is a private investment fund involving the pooling of capital raised for the fund and which operates on the principle of risk spreading.

Importantly, however, the following are expressly stated as not being intended to fall within the definition of a JPF:
1. holding companies;
2. joint ventures;
3. securitisation vehicles;
4. family office vehicles; and
5. carry/incentivisation vehicles.

Cayman

The definition of private fund captures any company, unit trust or partnership that offers or issues or has issued its non-redeemable investment interests, the purpose or effect of which is the pooling of investor funds with the aim of enabling investors to receive profits or gains from such entity’s acquisition, holding, management or disposal of investments, where:

(a) the holders of investment interests do not have day-to-day control over the acquisition, holding, management or disposal of the investments; and

(b) the investments are managed as a whole by or on behalf of the operator of the private fund directly or indirectly, but does not include (among other things) any non-fund arrangements including, for example, holding vehicles, joint ventures, proprietary vehicles, debt issuing vehicles, employee incentive schemes, structured finance vehicles.

Audit

Comparative Summary: Jersey vs Cayman

Feature	Jersey	Cayman
Audit Requirement	Not mandatory for JPFs (unless agreed by investors or required by structure)	Mandatory annual audit; statements must be filed with CIMA
Number of Investors	No investor/offer cap from 6 August 2025	N/A
Investor Type	Professional investors only	N/A
Approval Timeline	24 hours	Registration with CIMA; timelines vary
Directors Requirement	No mandatory Jersey resident director, but at least one expected	At least 2 natural persons required; no local residency requirement
Designated Service Provider (DSP)	Mandatory; must be a regulated Jersey entity	No DSP requirement, but compliance obligations apply
AML/CFT Compliance	DSP and JPF must comply with Jersey AML/CFT laws	Comprehensive AML/CFT regime applies
Tax Neutrality	Yes	Yes
EU access	Marketing under national private placement regimes (NPPRs)	Marketing under national private placement regimes (NPPRs)

Service Providers

A JPF must appoint a Designated Service Provider (DSP), which is a regulated full-service Jersey entity.
The DSP is responsible for regulatory compliance, including:
- Ensuring adherence to the Money Laundering (Jersey) Order 2008
- Acting in accordance with the Proceeds of Crime (Jersey) Law 1999
- Overseeing record-keeping and regulatory filings

Tax and Transparency

Jersey continues to be internationally recognised for its robust regulatory standards:

Full compliance with OECD BEPS requirements
Consistently high MONEYVAL ratings
Transparent and cooperative on international tax matters

Jersey’s longstanding reputation for transparency and international cooperation makes it a stable and reliable jurisdiction for both investors and managers. In contrast, some jurisdictions have faced increased scrutiny in recent years, including listings that may complicate EU market access. For those seeking long-term certainty and ease of cross-border marketing, Jersey offers a clear path forward.

Visit our Funds Sector page

Jersey has developed a well-respected and forward-thinking funds sector that offers regimes from retail options through to the more sophisticated and institutional end of the market.

Funds sector page

JPF Factsheet

Our factsheet provides a more detailed explanation of the key features of a JPF.

Read our Jersey Private Funds Factsheet

Tax and Transparency Timeline

We are proud that our high standards and commitment to transparency have been recognised on numerous occasions by independent authorities including the OECD, IMF and World Bank. Jersey has also been recognised as one of the leading jurisdictions worldwide for compliance with the FATF standards during its most recent MONEYVAL Mutual Evaluation Report (MER). Jersey was ‘compliant’ or ‘largely compliant’ with 39 out of 40 FATF recommendations, a level of technical compliance achieved by only a few jurisdictions worldwide.

View our Tax and Transparency Timeline