Code of Practice for Alternative Investment Funds and AIF Services Business – EU/EEA regime

Summary

This is a Jersey Financial Services Commission Code of Practice that transposes the EU AIFMD II reforms into Jersey's regulatory framework for Alternative Investment Funds (AIFs) and AIF Services Business, specifically for managers and funds with an EU/EEA nexus. It sets out detailed operating, transparency and depositary requirements that apply in addition to Jersey's general AIF regime, mirroring the EU Level 1 AIFM Directive and Level 2 AIFMD Regulation.

• Who it binds: Persons holding a Regulation 9 AIF certificate, persons certified to carry on AIF Services Business, JFSC-approved AIF prescribed service providers (including sub-threshold managers and AIF depositaries), and, via linked codes, Certified Fund holders, registered Fund Services Business providers and Recognized Fund functionaries/permit holders that are also AIFs or AIF Services Business.
• Core operating conditions: Initial capital and own funds, general principles of conduct, remuneration, conflicts of interest, risk management, liquidity management, investment in securitisation positions, general organisational requirements, valuation, delegation of AIFM functions, and depositary duties.
• Transparency requirements: Preparation of an annual report, disclosures to investors, and periodic reporting obligations to the JFSC.
• Rules for specific AIF types: Additional requirements for AIFMs managing leveraged AIFs and for AIFMs managing AIFs that acquire control of non-listed companies and issuers, including notification and disclosure duties and asset-stripping restrictions.
• Jersey-specific marketing rules: Private placement conditions for non-EU AIFMs marketing without a passport, depositary-lite conditions for EU AIFMs marketing non-EU AIFs, and guidance on passported authorisation and retail marketing.

The Code became effective from 16 April 2026 and was last revised 8 April 2026, reflecting the transposition of Directive (EU) 2024/927 (AIFMD II) alongside the original Level 1 AIFM Directive and Level 2 AIFMD Regulation. It operates alongside, and is cross-referenced from, the Code of Practice for Certified Funds and the Code of Practice for Fund Services Business.

Key obligations

• AIFMs and AIF Services Business persons within scope must comply with the initial capital and own funds requirements set out in the Code
• AIFMs must maintain risk management systems and liquidity management arrangements as required under the Code
• AIFMs must comply with remuneration principles and manage conflicts of interest as set out in the Code
• AIFMs must prepare and provide an annual report for each AIF they manage in accordance with the disclosure requirements
• AIFMs must make prescribed disclosures to investors before they invest and on an ongoing basis
• AIFMs must submit periodic reports to the JFSC as required under the reporting obligations provisions
• AIFMs must appoint and comply with depositary requirements, including Jersey Depositary or depositary-lite arrangements where applicable
• AIFMs managing AIFs that acquire control of non-listed companies must notify the JFSC of major holdings and control acquisitions and comply with related disclosure and anti-asset-stripping rules
• Non-EU AIFMs marketing without a passport must comply with the applicable Private Placement Rules
• Persons must not carry on AIF business or AIF Services Business without the required certificate, approval or permit

Applies to

AIFMs, EU AIFMs, Non-EU AIFMs, AIF Services Business providers, Jersey Depositaries, sub-threshold AIFMs, AIF prescribed service providers, Certified Funds, Fund Services Business, Recognized Funds

Deadlines

• 16 April 2026: Effective date from which the Code applies to the EU/EEA-focused regime
• 8 April 2026: Date the Code was last revised

Related documents

• This document is made under Alternative Investment Funds (Jersey) Regulations 2012
• This document is made under Financial Services (Jersey) Law 1998