Unregulated Jersey fund is a first for Mourant

Mourant ;du ;Feu ;& Jeune has become the first law firm to establish an unregulated fund in Jersey.

The offshore firm set up two unregulated exchange traded funds in the first week of the launch of the new regime in March this year, with both listed on the Channel Islands stock exchange.

Each fund vehicle was listed as a protected cell created by a Jersey protected cell company, which was established to issue structured equity products in the form of preference shares.

Both funds have issued shares that are designed to provide a return linked to the performance of a proprietary market neutral index over a three-year period.

Mourant ;partner Jonathan ;Rigby, ;who advised on the deal, said: “The new regime has a lightness of touch and flexibility which is similar, and in some aspects superior to, the equivalent regimes offered by Caribbean and other offshore jurisdictions.”

Rigby said the firm had a “steady stream” of clients looking to establish standalone unregulated funds.

“Unregulated funds are generating considerable interest among European-based alternative asset managers and are likely to drive further growth in the island’s fund industry,” he said.

An unregulated fund must be closed-ended and listed on one of the exchanges and markets approved by the Jersey Financial Services Commission.

Senior associate Michael Williams also worked on the deal.