Jersey has introduced two new classes of investment fund which can be established without regulatory approval under Jersey’s funds legislation, with immediate effect.

Within the new regime, there is no audit requirement, no limit on the number of investors, no investment or borrowing restrictions and no requirement for Jersey service providers. Promoters are offered a choice of fund vehicle including company, protected cell or incorporated cell company, unit trust or limited partnership.

Unregulated Eligible Investor funds can be open or closed ended and are restricted to sophisticated investors (including those who make a minimum initial investment or commitment of $1 million or equivalent).

Unregulated Exchange Traded funds must be listed on one of 50 pre-approved stock exchanges including London, New York, the Channel Islands Stock Exchange, AIM, Nasdaq and Euronext.

Robert Kirkby, technical director, Jersey Finance, said: “Jersey is now a much more attractive prospect for the typical hedge fund or private equity manager who invariably wants a fund set up and ready to trade in short timescales with no local minimum regulatory input. When combined with Jersey’s convenient time zone and its existing reputation for funds business, we believe the new regime is a welcome addition to our capabilities as a funds jurisdiction and will be particularly attractive to European managers and promoters.

“Jersey has been experiencing record growth in fund assets under administration and in particular has attracted considerable new business in the alternative fund sector, which now accounts for more than half the total value of the funds industry. The streamlined regulatory regime, which began with the introduction of the Expert Funds Guide in 2004, has been one of the driving forces behind this growth and the introduction of unregulated categories now completes the island’s regulatory offering for the funds industry.”