Financial Services (Investment Business (Restricted Investment Business – Exemption)) (Jersey) Order 2001

Summary

This Order exempts certain persons from the general licensing requirements of the Financial Services (Jersey) Law 1998 when they act as a functionary in relation to a professional investor regulated scheme and carry on only restricted investment business. It defines the key terms 'restricted investment business', 'professional investor regulated scheme' and 'professional investor', and sets conditions that must be met for a scheme and its investors to qualify for the regime.

• Restricted investment business: Covers dealing, arranging deals, discretionary management and giving investment advice, but only in relation to a professional investor regulated scheme or its investors.
• Professional investor regulated scheme (pre-1999 schemes): Schemes with securities in issue on 1 July 1999 qualify if each investor (other than those who held securities before that date) received and signed an investment warning.
• Professional investor regulated scheme (other schemes): Other schemes qualify if each investor has made a minimum subscription of £250,000, or is a professional investor, and has received and signed an investment warning.
• Investment warning content: Must state that the investment is only suitable for sophisticated investors who understand the risks, and that the scheme and its functionaries are not subject to all provisions of the 1998 Law.
• Scope of exemption: A qualifying functionary is exempt from Article 7 registration requirements of the Law, but Articles 12, 23 to 26, 28, and 32 to 39 and 41 continue to apply as if the person were registered.

The Order has been amended several times, including to align definitions with limited liability companies legislation and, most recently, to incorporate the professional investor definition from the Jersey Private Fund Guide (effective 6 August 2025) and further substitutions to Article 3 effective 13 April 2026.

Key obligations

• A functionary relying on the exemption must ensure that each investor in the scheme has received and signed the prescribed investment warning before the exemption applies.
• For schemes not grandfathered from 1 July 1999, each investor must either subscribe a minimum of £250,000 or qualify as a professional investor, in addition to signing the investment warning.
• Exempt functionaries remain subject to Articles 12, 23, 24, 25, 26, 28, and 32 to 39 and 41 of the Financial Services (Jersey) Law 1998 as if they were registered persons.

Applies to

functionaries of professional investor regulated schemes (managers, investment managers, advisers, administrators, paying agents, distributors, subscription agents, placement agents, sales agents, dealers, trustees, custodians, custody agents, depositories, general partners), professional investor regulated schemes, Jersey private funds

Related documents

• This document is made under Financial Services (Jersey) Law 1998