Improved Access To Capital Markets For Jersey Companies

On 19 October 2021, the definition of a “prospectus” under Jersey company law was narrowed by the introduction of a number of a new exclusions which make it easier for Jersey companies to raise funds from sophisticated investors.

Prior to the change, any invitation to acquire or apply for securities issued by a Jersey company was considered a prospectus, and therefore could only be circulated with the prior consent of the Jersey Financial Services Commission (JFSC), unless it was made to a restricted group of potential investors not exceeding 50.  For those seeking to raise funds solely from sophisticated investors, obtaining this was a disproportionate administrative burden beyond that imposed in other financial centres and subjected the issuer to on-going legal and administrative requirements, primarily as a result of its automatic treatment as a public company once a “prospectus” had been issued.