Jersey Finance, the body appointed by the Jersey government and finance industry to promote the island as an international financial centre, has recorded the launch of 26 unregulated funds since the regime governing them began in February.

The body’s technical director, Robin Kirkby, said the figure reflected a sound start for the unregulated funds regime, particularly in light of current market conditions. “Considering that the number of fund launches generally has slowed, the industry is encouraged by such a promising start. We are seeing significant interest in the new regime and law firms on the island have reported a surge of enquiries about the new rules,” he added.

The types of fund established since the spring are varied in scope, including cell company structures for multi-strategy funds as well as real estate and private equity funds.

In keeping with the burgeoning global trend for all things “green”,  several funds have increased investment in the “green” sector, including a fund investing in solar power and high tech, bio-tech and environmental projects. Real estate funds have also been launched to fund property and land acquisition in such diverse locations as London, California and Brazil.

In February, WealthBriefing reported the introduction of the new unregulated funds rules, designed to provide promoters and other fund providers with simplicity, certainty and speed while setting up two types of specialist fund: Unregulated Eligible Investor Funds and Unregulated Exchange Traded Funds. A UEIF may be open or closed ended and may only be offered to eligible investors: high net worth individuals or investors.

A UETF must be closed ended and listed on one of the exchange markets approved by the Jersey regulator, including the London Stock Exchange, AIM, the Irish Stock Exchange and the Channel Islands Stock Exchange.

Under Jersey rules, there is no audit requirement and no investment or borrowing restrictions. There is no limit on the number of investors and the employment of Jersey service providers is not compulsory. Promoters can choose from a number of fund vehicles including company, protected cell or incorporated cell company, unit trust or limited partnership.