Certified Funds Code of Practice

Summary

This Code of Practice is issued by the Jersey Financial Services Commission under Article 15 of the Collective Investment Funds (Jersey) Law 1988. It sets out enforceable principles and detailed rules governing the conduct, corporate governance, and prudential standards of certified funds in Jersey, including OCIFs, Jersey Expert Funds, Jersey Listed Funds and Jersey Eligible Investor Funds.

• Nine core principles: A Fund must act with integrity, act in the best interests of Unitholders, organise and control its affairs with adequate risk management, be transparent with Unitholders, maintain adequate financial resources and insurance, deal openly with the JFSC, avoid misleading statements, comply with any applicable Guide, and comply with the AIF Code where relevant.
• Notification and consent regime: Schedule 1 sets out a detailed table requiring Certificate Holders to notify the JFSC or obtain its prior written consent for specified events, including changes to Constitutive Documents, Fund Services Business Agreements, service providers, prospectuses, corporate governance, complaints handling, and fund type-specific matters.
• Breach consequences: Non-compliance can lead to JFSC regulatory action, written directions under Article 13, public statements under Article 17, and in serious cases winding up of the Fund or revocation of its Certificate.

Responsibility for compliance rests with the Fund operating through its Certificate Holder (or, for limited partnerships and unit trusts, the general partner or trustee), even where day-to-day tasks are delegated to an appointed manager or other service provider.

Key obligations

• A Fund must notify the JFSC in writing immediately if it becomes aware, or has reason to believe, that it is or may not be in compliance with an applicable Guide
• A Fund must obtain the prior written consent of a duly authorised JFSC officer before making changes that are not in accordance with an applicable Guide
• A Fund must notify the JFSC in writing within 28 calendar days of a change taking place where the change is in accordance with the applicable Guide but affects information contained in the original application
• A Fund must obtain the prior written consent of the JFSC before any change of fund service provider
• A Fund must obtain the prior written consent of the JFSC before issuing any prospectus, explanatory memorandum, or other offering document, unless waived or covered by the Certified Funds Prospectuses Order
• A Fund must obtain the prior written consent of the JFSC before any material change to its Constitutive Documents or Fund Services Business Agreements
• A Fund must notify the JFSC in writing immediately if it is refused listing on a recognized stock exchange, its listing permission is revoked or significantly amended, or another material event affects its listing
• A Fund must maintain, and be able to demonstrate, adequate financial resources and adequate insurance
• A Fund must comply, where relevant, with the applicable sections of the AIF Code

Applies to

certified funds, Certificate Holders, OCIFs, Jersey Expert Funds, Jersey Listed Funds, Jersey Eligible Investor Funds, fund service providers, Unitholders

Deadlines

• within 28 calendar days of the change taking place: Notification to the JFSC required for changes that are in accordance with an applicable Guide but affect information in the original fund application
• immediately: Notification required to the JFSC where a Fund becomes aware it may not be complying with an applicable Guide, or where listing status changes materially
• 2 April 2012: Effective date of this version of the Code

Related documents

• This document is made under Collective Investment Funds (Jersey) Law 1988