Collective Investment Funds (Unclassified Funds) (Prospectuses) (Jersey) Order 1995

Summary

This 1995 Jersey Order sets out prospectus requirements for unclassified collective investment funds under the Collective Investment Funds (Jersey) Law 1988. Unclassified funds are Jersey funds that are not recognized funds under the General Provisions Order. The Order requires a compliant prospectus to be prepared, filed with the Jersey Financial Services Commission, and made available before units in the fund are marketed or sold, and it creates civil liability for false or misleading prospectuses.

• Prospectus preparation: The manager (for a unit trust) or the directors or manager (for an open-ended investment company) must prepare an English-language prospectus that states it is prepared under this Order and complies with the detailed Schedule requirements (manager, trustee/custodian, investment adviser, registrar, auditor, legal adviser, fund structure, unit characteristics, valuation, charges, sale and repurchase terms, and required statements).
• Marketing restrictions: Units may not be marketed unless a compliant prospectus exists, the Commission has consented, and a copy has been sent to the Commission and to the trustee or custodian.
• Sale conditions: Before selling units, the manager or directors must offer purchasers a free copy of the prospectus and the latest annual report and any subsequent half-yearly report, subject to a limited exception for sales not conducted face-to-face or by telephone, in which case a copy must be sent free on request.
• Prospectus revision: The prospectus must be revised, by substitution or supplement, whenever a significant change occurs or a significant new matter arises.
• Public inspection: The manager (and, for an open-ended investment company, that company) must make a copy of the prospectus available for free public inspection during office hours at its principal Jersey place of business.
• Commission consent for deviations: The Commission may consent to marketing on the basis of a prospectus that does not fully comply with the Schedule if the deviation does not affect its substance or is not calculated to mislead.
• Compensation liability: Persons treated as responsible for the prospectus (manager, directors, and anyone authorising its contents) are liable to compensate purchasers who suffer loss from untrue or misleading statements or required omissions, subject to statutory defences such as reasonable belief, timely correction, or the purchaser's prior knowledge of the falsity.

The Order does not impose fixed calendar deadlines; its obligations are triggered by events such as marketing units, effecting a sale, or a change in fund circumstances requiring prospectus revision.

Key obligations

• The manager (unit trust) or directors/manager (open-ended investment company) must prepare an English-language prospectus complying with the Schedule before marketing units in an unclassified fund
• The prospectus must be revised, by substitution or supplement, whenever a significant change occurs or a significant new matter arises that ought to be stated
• Before marketing units, the manager or directors must obtain the Commission's consent and send a copy of the prospectus to the Commission and to the trustee or custodian
• Before effecting a sale of units, the seller must offer the purchaser a free copy of the prospectus and the latest annual report and any subsequent half-yearly report, unless the sale is effected otherwise than face-to-face or by telephone, in which case a free copy must be sent on request
• The manager (and the company, for an open-ended investment company) must make a copy of the prospectus available for free public inspection during ordinary office hours at its principal place of business in Jersey
• Persons responsible for the prospectus are liable to pay compensation to purchasers who suffer loss from an untrue or misleading statement or a required omission, unless a statutory defence under Article 6 applies

Applies to

managers of unit trusts, directors of open-ended investment companies, trustees, custodians, unclassified collective investment funds, fund service providers

Related documents

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