The Jersey Financial Services Commission has made a new piece of online application software available for Jersey Private Funds.

The regulator is hailing this new way of applying for regulatory permission as a ground-breaking one for both itself and the financial sector, saying that it will change the way in which applications are processed for new licences. This is a key part of its 'change programme' and is important for its 'e-enablement strategy.' The regulator expects it to speed up application turnaround times and make the whole process more efficient, eventually making it an easier organisation with which to do business.   

The JFSC sees this as its first step towards the provision of end-to-end authorisation for new licenses across all the sectors that it supervises. When it was developing and testing the portal, it worked with an external user group of financial services firms. Paul Monahan, Director from Langham Hall Fund Management (who was part of the user group), told Compliance Matters: “This looks set to change how industry interacts with our regulator and all applications and notifications will be paper-free by early 2019. The system is autonomous and provides the potential for instant approvals for suitable applicants, which could be a real game-changer when it comes to application timescales."

A JPF is a private investment fund which involves the pooling of capital raised for it and whose purpose is to spread risks. It may be established in Jersey or in another jurisdiction which requires the regulator to provide a 'relevant consent' (in Jersey's case, consent by the JFSC pursuant to the Control of Borrowing (Jersey) Order 1958) and in which the number of offers of units for subscription does not exceed 50 (with the number of investors not exceeding 50 also) with each investor being a 'professional investor' who makes a minimum initial investment in or commitment to the JPF of not less than £250,000 sterling (or the equivalent of that amount in another currency) either through an initial offering of units in the JPF or by subsequent acquisition.

A 'professional investor' can be an individual who has a net worth, or joint net worth with his wife, greater than US$1 million (or other equivalent) excluding his principal place of residence and any rights under a contract of insurance. It can also be a natural or legal person, partnership, trust or other unincorporated association whose ordinary  business includes the acquisition, underwriting, managing, holding or disposing of investments (whether as principal or agent) or the giving of advice on investments. There are 11 other possibilities.