Views are being sought on proposed changes to the circumstances in which a formal document is required when inviting investment in a Jersey company.
A consultation has been launched, particularly aimed at Jersey’s business community, on proposed changes to the definition of ‘prospectus’ – the document outlining a company’s details which is circulated to potential investors.
Under the current law, a prospectus must be produced whenever more than 50 people are invited to become a member of a Jersey company. The requirement is considered burdensome and costly and is out of sync with other jurisdictions, including the EU and UK.
The proposed changes would bring Jersey in line with UK and EU company regulations by exempting a company from having to produce a prospectus when promotion is only to professional or qualified investors; the minimum investment is more than E100,000; or where fewer than 150 people outside Jersey (or 50 people in Jersey) are approached.
The majority of invitations issued by Jersey companies are to investors outside the Island, and Jersey companies will continue to be required to comply with the legal requirements related to the jurisdictions in which the invitation is circulated.
Islanders wishing to find out more and share their views should read the consultation, which is open until 7 September.
Government of Jersey News Release.