Collective Investment Funds (Recognized Funds) (Rules) (Jersey) Order 2003

Summary

This Order brings into force the Collective Investment Funds (Recognized Funds) Rules 2003, a comprehensive rulebook made under the Collective Investment Funds (Jersey) Law 1988 that governs how funds recognized in Jersey must be constituted, marketed, priced, invested, administered and reported on. It applies to recognized funds (unit trusts, companies and other fund vehicles holding a recognized fund certificate) and to the managers, directors, depositaries, trustees and custodians who operate them.

• Constitution and prospectus: Sets requirements for constitutional documents, naming, unit classes, and preparation, publication and truthful content of a fund prospectus, with revision where information becomes materially inaccurate.
• Pricing and dealing: Prescribes rules for initial offers, creation and cancellation of units, sale and repurchase pricing, forward/historic pricing, dilution levies and valuation of fund property.
• Investment and borrowing powers: Sets category specific investment limits and spread requirements for securities funds, money market funds, futures and options funds, geared futures and options funds, property funds, warrant funds, feeder funds, funds of funds and umbrella funds, plus rules on stocklending, borrowing and cover for derivatives.
• Manager and depositary duties: Requires managers to manage the fund properly, keep records, arrange audits, file tax returns and supply information to the depositary; requires depositaries to oversee the manager and control fund property; sets rules for delegation, conflicts of interest, and replacement or retirement of managers and depositaries.
• Charges, income and reporting: Regulates permissible charges and expenses, allocation and distribution of income, and requires preparation, publication and offer to unitholders of annual and half yearly reports (including manager, director, auditor and depositary reports).
• Meetings, modifications, suspension and certification: Covers procedures for unitholder meetings, modification of constitutional documents, amalgamation and reconstruction, suspension and winding up of a fund pool, and the application, grant, cancellation or amendment of a recognized fund certificate.

The version shown is the official consolidated text current from 4 November 2025, reflecting amendments made by the Collective Investment Funds (Recognized Funds) (Rules) (Jersey) Amendment Order 2025 (R&O.61/2025) and earlier amending instruments dating back to 2005.

Key obligations

• Managers must prepare, publish and keep accurate a prospectus for the recognized fund, revising it where it becomes false or misleading
• Managers must maintain proper records of the fund, arrange for audit of the fund's accounts, and file tax returns on behalf of the fund
• Managers must supply the depositary with information necessary for the depositary to perform its oversight functions
• Depositaries must oversee the manager's conduct and exercise control over the property of the fund
• Managers and directors must comply with the investment, spread and borrowing limits applicable to the fund's category (securities, money market, futures and options, geared futures and options, property, warrant, feeder, fund of funds or umbrella fund)
• Managers and directors must produce annual and half yearly reports and offer them to purchasers of units
• A collective investment fund must obtain a recognized fund certificate before operating as a recognized fund, and notify or apply for amendment/cancellation as circumstances change
• Managers must sell and repurchase units in accordance with the prescribed pricing parameters and must publish prices as required

Applies to

recognized funds, unit trusts, fund companies, fund managers, directors of fund companies, depositaries, trustees, custodians, auditors of recognized funds

Deadlines

• 4 November 2025: Effective date of the current consolidated version, incorporating the Collective Investment Funds (Recognized Funds) (Rules) (Jersey) Amendment Order 2025
• 2 April 2003: Original commencement date of the Collective Investment Funds (Recognized Funds) (Rules) (Jersey) Order 2003 (subject to Part 16 transitional provisions)

Related documents

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