Jersey has long established itself as a nimble, agile fund domicile, offering global reach, expert infrastructure, and a pragmatic regulatory environment to support the ambitions of managers and investors.
Tax neutrality, a commitment to substance, and a world-class legal framework have all played a part in establishing Jersey as a leading funds centre, not just in Europe but globally – with more than £450bn of fund assets administered in the jurisdiction, and around 90% of funds business in the alternative assets space.
But as investor demands have shifted and the private markets have evolved – impacted increasingly by regulation and technology -– it has become important for Jersey to continue to adapt to the needs of fund managers and investors alike.
It is against this backdrop that Jersey is this year taking bold strides to respond to those shifts and further enhance its proposition -– to make it easier, faster, and more efficient to raise, manage, and return capital, particularly for professional investors.
JPF appeal
Over more than five decades Jersey has created an ecosystem for supporting cross-border investment funds, offering a diverse range of vehicles and regulatory options for fund managers. In more recent years, that suite of options has focused in particular on alternative asset classes including private equity, venture capital, and real estate.
The Jersey Private Fund (JPF) has played a significant part in this. Introduced in 2017 as a fast-track, cost-effective solution for funds with up to 50 professional investors, more than 750 JPFs have been established (as of March 2025). And that number continues to grow.
This summer, the Government of Jersey and the Jersey Financial Services Commission (JFSC) announced a number of changes to the JPF regime. Positioned as part of the Government’s focus on the future competitiveness of Jersey as an international finance centre, the changes have already been welcomed by the industry and market participants.
The changes are now, as of 6 August, in play, with updated guidance having now been published by the JFSC. The key improvements include:
- The ability to have an unlimited number of offers/investors, provided the investors is a ‘professional investor’ under the new guidance.
- 24-hour authorisation
- A broader definition of professional investor
- The possibility to list a fund, subject to approval
And all while maintaining robust oversight and regulatory standards.
The clear trajectory here is to meet changing investor expectations – specifically in relation to flexibility, speed to market and certainty. Overall, these enhancements should serve to solidify the JPF’s position as the preferred vehicle for institutional-grade capital formation.
Focus on innovation
While significant in their own right, these JPF changes form part of a wider commitment regarding the future direction of Jersey’s funds industry – an industry that is committed to progress and innovation and an industry that is entirely geared up to supporting seamless flows of high-quality capital.
This is evidenced, for instance, in the efficient role Jersey plays within the European market, providing access for global managers to EU capital. While Jersey sits outside the EU, it retains targeted, efficient access to EU investors through the National Private Placement Regime (NPPR).
For managers marketing to select EU jurisdictions, NPPR provides a proportionate, cost-effective and flexible solution, avoiding the operational burden of full AIFMD passporting. It’s a tried-and-tested solution that has, again, found favour amongst managers, with more than 400 funds being marketed into Europe by more than 200 managers, who are able to market into more than 20 EU States in this way – including Germany, France, the Netherlands, and the Nordics.
Elsewhere, the industry retains a commitment to innovation – it’s almost exactly a year on, for instance, since the JFSC published updated guidance focusing on asset tokenisation.
Again, widely welcomed at the time, the new guidance sought to clarify the regulatory expectations in relation to blockchain technology. Since then, great strides have been made in cementing Jersey’s reputation as a reputable centre for tokenised fund products, and this is an area that continues to grow and evolve at pace.
With the industry, Government and regulator all able to display a positive and collaborative relationship, further funds-related enhancements are already in train to further bolster Jersey’s competitiveness.
Flexible Distributions
Jersey’s appeal goes beyond access and structuring too, extending to practical operational advantages, particularly in returning capital to investors.
One standout feature that is becoming increasingly significant is Jersey’s distribution regime, which uses a solvency-based test rather than the traditional profits-based approach. This allows greater flexibility and responsiveness when managing cash flows and returns to investors.
This is particularly advantageous for private equity and real estate funds, where interim distributions or capital returns often fall outside traditional accounting periods.
Progressive
The recent enhancements to the JPF provide a welcome reminder that Jersey is absolutely committed to meeting the needs investors in an evolving private markets landscape.
They are a reflection of a wider commitment to flexibility, clarity, and a progressive mindset – qualities that have also been borne out through the jurisdiction’s proposition to facilitate seamless capital flows within the EU through NPPR, to supporting the rise of virtual assets work, to empowering managers via operational efficiency and agility – all backed up by a simple, transparent, tax- neutral framework.
With a firm focus on further innovation in the months ahead, Jersey’s ability to deliver regulatory confidence, commercial agility, and investor-aligned outcomes will ensure it remains a jurisdiction of choice for private fund managers.
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