Dominion offers a number of fund and fund-related services to clients active in the fund management industry. We also have wide experience in the establishment and management of entities engaged in funds service business (such as Fund Managers and Distributors) that require registration with the Jersey Financial Services Commission.

Fund Management and Distribution

Working with clients’ UK tax and legal advisers, Dominion can establish and manage companies intended to act as the Fund Manager and/or Distributor of funds established either in Jersey, or elsewhere as part of a wider structuring arrangement.

Companies engaged in such activity in Jersey are required to be licensed by the Jersey Financial Services Commission under the Financial Services (Jersey) Law 1998. As well as establishing the company, Dominion can project-manage the Jersey licence application process and ensure that the appropriate management and corporate governance framework is put in place.

Dominion is also able to offer the services of experienced directors who can form the Board of the Fund Manager/Distributor, as well as provide company secretarial services and the provision of a Money Laundering Compliance Officer (MLCO) and Money Laundering Reporting Officer (MLRO), as required by Jersey Law.

Dominion's experienced staff ensure that the Fund Manager/Distributor’s regulatory responsibilities are met through the application of detailed operating procedures.

Dominion is licensed to act as a Manager of Managed Entity (MoME) under the Financial Services (Jersey) Law 1998.

Jersey Unregulated Funds

Jersey unregulated funds are fast becoming a popular alternative to funds established in the more traditional jurisdictions. The unregulated funds regime seeks to regulate the funds service provider rather than the fund itself, thereby giving clients the opportunity to locate their fund in a first-class jurisdiction in a cost-effective way.

Dominion establishes Jersey unregulated funds for clients and provides experienced directors to sit on the board of such funds. Working with Jersey lawyers, Dominion can project-manage the establishment of the fund and ensure that the appropriate management and corporate governance framework is put in place.

Overseas Marketing Companies for Hedge Funds and Other Alternative Asset Managers

Properly organised, it is possible for up to 25% of the total performance and investment management fees that would otherwise be payable to the UK investment manager to be retained offshore and for these fees, net of operational costs of the overseas marketing company, to be repatriated to hedge fund principals in a tax efficient manner.

In the majority of cases, the hedge fund (that might typically be based in Cayman) appoints a Cayman fund manager which sub-contracts the fund management to the UK investment manager. Through this structure it is possible to organise matters so that the Cayman fund manager retains the responsibility for marketing the hedge fund to investors who are based outside the UK. In the absence of any full or part time staff who might be employed in Cayman by the Cayman fund manager to fulfil this function, it will in practice be very difficult for this activity to be properly carried out from Cayman without causing significant UK tax risk.

Consequently, for many investment managers who are based in the UK and who want to take advantage of the benefits that ensue from an overseas marketing company, it will be desirable to transfer the control and management of the activities of the Cayman fund manager to Jersey where the marketing activities can also be regulated by the Jersey Authorities.

If you would like to discuss Funds please speak to Jon, Ben or Andrew in our Wealth Management Team.