Positioning for Growth

In a strategic move to refresh the offering of the local asset management industry, both Guernsey and Jersey have recently announced targeted enhancements to their respective fund regimes, Guernsey’s Private Investment Fund (PIF) and the Jersey Private Fund (JPF) regimes.

These developments come at a time when the Channel Islands continue to demonstrate strong performance in their fund sectors. Recent data from the respective financial services commissions underscores the enduring strength and relevance of Guernsey and Jersey as fund domiciles of choice, reinforcing their appeal to global asset managers.

The islands continue to attract global fund promoters with their robust but proportionate regulatory environments, operational flexibility, and deep expertise in private capital. The latest enhancements to the PIF and JPF regimes are set to reinforce this positioning, unlocking new efficiencies and opportunities for asset managers operating in an increasingly dynamic and globalised market.

On 23 July 2025, the Government of Jersey announced a series of updates to the JPF regime coming into force on 6 August 2025 (Government unveils updates to Private Fund Regime and Sound Business Practice Policy). These changes aim to modernise the JPF framework and align it more closely with the evolving demands of global private capital markets. They also aim to significantly enhance the appeal of JPFs, making them more accessible and commercially viable for Fund Managers, as well as streamlining the application process.

The core updates are as follows:

• Removal of the 50-offer/investor cap, allowing for greater scalability
• Broadened definition of “professional investor”, expanding market reach
• Permission to list JPF interests, subject to Jersey Financial Services Commission (JFSC) consent
• Introduction of a 24-hour authorisation process for applications submitted by registered Designated Service Providers (previously 48 hours)

Additional information on the enhancements to the JPF regime can be found in the JFSC’s Q&A linked below:

On 19 May 2025, Guernsey’s PIF regime went through a similar reform, designed to create a streamlined and purpose-built regime for funds targeting sophisticated investors. These changes represent a significant evolution in Guernsey’s regulatory approach, shifting the focus to a more qualitative investor-focused approach. The flexibility and efficiency of the 2025 PIF Rules are expected to drive increased adoption by both emerging and established managers.

The revised framework consolidates previous entry routes into two distinct categories: “Qualifying” PIFs and “Family” PIFs, simplifying the regulatory landscape. Some of the key updates include:

• Removal of investor number caps and expansion of eligible investor definitions
• No requirement to appoint Guernsey-based manager
• Removal of requirement to appoint an auditor
• Retention of one-business-day fund approval and streamlined licensing for PIFs
• Designed as a streamlined regime, tailored for sophisticated investor needs

These enhancements reinforce Guernsey’s commitment to maintaining a responsive and globally competitive fund environment, positioning the jurisdiction as a compelling choice for private capital structuring.

Additional information on the changes to the PIF regime can be found in the Guernsey Financial Services Commission’s announcement linked below:

The recent reforms to Guernsey’s PIF framework and Jersey’s JPF regime represent more than regulatory updates, they signal an effort by both jurisdictions to future-proof their fund environments and reinforce their global relevance in the private capital space. By prioritising flexibility, speed to market, and investor-centric design, these enhancements position the Channel Islands as agile, forward-looking fund domiciles capable of meeting the evolving demands of fund managers and investors alike.

As global capital continues to seek efficient, well-regulated platforms for deployment, the Channel Islands’ commitment to innovation and responsiveness will be key to sustaining growth and attracting new market entrants. For asset managers, these changes offer a timely opportunity to reassess fund structuring strategies and leverage the enhanced regimes to unlock operational efficiencies and investor reach. The outlook for the industry is one of cautious optimism, grounded in regulatory strength, but energised by a renewed focus on commercial viability and global alignment.

As the regulatory landscape continues to evolve, understanding the implications of the updated JPF and PIF regimes is essential for fund managers and service providers operating in the Channel Islands. At KPMG, we combine deep local expertise with global insight to help clients navigate these changes with confidence. Whether you're exploring fund structuring options, assessing regulatory impact, or seeking operational efficiencies, our team is here to support you. To learn more about how we can assist or to discuss the recent updates in more detail, please reach out to a member of our team.