Promoter Policy (Revised October 2019)

Summary

This JFSC policy explains how the Commission assesses the acceptability of a 'promoter' when reviewing applications relating to certain Jersey collective investment funds. It defines what makes a person or organisation a promoter and sets out the criteria the JFSC weighs before accepting them, varying by the type of investor the fund targets.

• Scope: Applies to Jersey open-ended classified funds offered to the general public (OCIFs) and to COBO-Only funds consented under the Control of Borrowing (Jersey) Order 1958.
• Excluded funds: Does not apply to Jersey Expert Funds, Eligible Investor Funds, Listed Funds, or Private Funds, which are governed by their own classification guides.
• Promoter test: A promoter is identified as the driving force or 'brainchild' behind a scheme, the person investors are drawn in by, or an organisation responsible for administration, investment and marketing together.
• Assessment criteria: The JFSC weighs the promoter's track record and relevant experience, reputation, financial resources, and the spread of ultimate ownership, applying a stricter or more relaxed standard depending on whether investors are retail or professional/institutional.
• Evidencing investor type: Investor type may be evidenced through minimum investment levels, lists of likely investors, investor qualification restrictions, prospectus statements limiting offering to professional/institutional investors, or placement-only distribution with contractual selection criteria.

The policy is a discretionary assessment framework rather than a set of fixed rules; deficiencies against one criterion may be offset by strengths in another, and the JFSC considers the overall balance when deciding whether to accept a promoter.

Key obligations

• Applicants must be prepared to demonstrate why a proposed promoter should be regarded as acceptable and furnish documentary evidence in support of this (e.g. CVs, references, financial information).
• Applicants for OCIFs and COBO-Only funds must be able to evidence the promoter's track record, reputation, financial resources and ownership spread appropriate to the type of investor targeted.
• Where the fund is offered to professional or institutional investors, applicants may need to provide evidence of investor type, such as minimum investment levels, investor qualification restrictions, or prospectus statements limiting the offering.

Applies to

promoters of collective investment funds, Jersey open-ended classified collective investment funds offered to the general public (OCIF), COBO-Only funds