Jersey and Guernsey: Private Funds – the 2025 Battleground

Two Islands, both alike in dignity. In the English Channel, where we lay our scene.

The history of competition between Jersey and Guernsey goes back, not quite to the time of Shakespeare, but certainly to the English Civil War.

But now, both Bailiwicks can point to one common advantage – the recent update to Private Funds regulations.

Fresh rules in both Guernsey and Jersey remove legacy constraints, accelerate launches and widen the investor pool, collectively positioning the islands as the ideal harbour for the next generation of private funds.

Guernsey – the 2025 PIF Rules

On 19 May 2025 the Guernsey Financial Services Commission unveiled its new Private Investment Fund Rules and Guidance. The updated framework retires previous sub-categories and introduces two clear routes: the Qualifying PIF and the Family PIF. Both enjoy a one-business-day registration turnaround, no limits on fund size, offers or investor numbers, and—crucially—no mandatory audit requirement. Managers may appoint a licensed manager, but it is no longer compulsory; where licensing is required it is fast-tracked alongside fund registration. These refinements dramatically cut cost and administrative friction, making Guernsey’s PIF equally attractive for first-time VC sponsors and large-cap private-equity houses.

Jersey – JPF 2025 enhancements

Just eight weeks later, Jersey’s government signed the Ministerial Order that modernises the Jersey Private Fund (JPF) Guide with effect from 6 August 2025. The headline changes mirror the Guernsey momentum: the 50-offer/50-investor ceiling is gone; the professional-investor definition has been broadened and now encompasses a professional client (under FCA rules) and a US accredited investor (under SEC rules); and a 24-hour approval clock is written into statute via a registered Designated Service Provider. Managers can even seek regulator consent to list interests for technical or private placements, adding optional liquidity without heavy-handed oversight.

Lean, Speed and Scale

Both islands now guarantee a one-day (or faster) authorisation window, a critical differentiator when sponsors are racing to secure allocations or close co-investment deals. Rapid approvals translate into reduced blind-pool risk, earlier deployment and stronger internal rates of return, giving Channel Islands-domiciled vehicles a tangible commercial edge over mainland European alternatives that still wait weeks for a green light.

By abolishing investor caps while retaining the “private” character of each structure, the new rules allow funds to grow organically without an expensive migration to a fully regulated regime. Expanded professional-investor definitions mean a broader audience can participate, yet the requirement that all participants meet qualitative sophistication tests ensures regulatory confidence and reputational integrity remain intact.

The removal of compulsory audits and, in Guernsey, the need for a licensed manager, pares ongoing costs to the essentials—an advantage amplified by the Channel Islands’ zero-rated VAT, tax-neutral fund vehicles and world-class administrator base. Low friction does not equal low standards: conflict-of-interest controls, economic-substance requirements and robust AML/CFT rules continue to apply, ensuring investors enjoy institutional-grade safeguards. (guernseyfinance.com)

Beyond the rulebooks lies a mature ecosystem of expert legal counsel, administrators and fiduciaries who collectively service thousands of funds across private equity, venture, real assets and credit. The islands’ time zone bridges US and Asian markets; English law familiarity eases financing; and global ESG credentials—exemplified by leading sustainable-finance initiatives—align well with LP mandates.

With the 2025 reforms in force, the Channel Islands offer an unrivalled blend of speed, flexibility and credibility for sponsors seeking to launch, scale or redomicile private funds.

Whether you are a first-time manager chasing agility or an established platform targeting larger pools of capital, Guernsey and Jersey now deliver a unified, future-proof solution, backed by regulators responding to market conditions.

For private capital, the whole world’s a stage but Jersey and Guernsey are now serious players.

This article was first published in Business Brief. To find out more, contact Kobus or Will directly.