Jersey is introducing an unregulated funds regime designed to provide promoters and other fund introducers with simplicity, certainty and speed when setting up some types of specialist fund. A key feature is that there will be no need to seek regulatory approval when establishing the fund. Geoff Cook, chief executive of Jersey Finance, said: “This is a significant step forwards for the funds industry in Jersey. Fund promoters of high net worth, sophisticated investors and institutions will have greater flexibility when choosing Jersey and will be able to structure their funds to suit both commercial and tax requirements.” Set for introduction in early 2008, the new regime includes an unregulated eligible investor category and an unregulated exchange traded category. Funds in these categories will not be approved or authorised by the island’s financial regulator, the Jersey Financial Services Commission. It is hoped they will appeal to promoters such as hedge fund managers and other financial institutions who look to set up their funds in jurisdictions in which they can establish an unregulated product, often because the speed in bringing the product to market is essential. Consultations continue with the JFSC to fine tune the proposals ready for the launch. The key features of the UEIFC include a minimum investment criterion of $1 million or a need to be a sophisticated investor. It applies to both open and closed ended funds and can be structured using companies, unit trusts and limited partnerships; there is no requirement for Jersey domiciled administrator, directors or custodian and no audit requirement. Features of the UETFC are similar but with no minimum investment and being applicable to closed-end funds only. The value of the funds industry in Jersey recently reached a new record high of £210 billion ($428 billion) with funds in the alternative investment sector accounting for more than half of that total.