Saturday 16 October 2021
Select a region

Investor prospectus law change proposed

Investor prospectus law change proposed

Thursday 19 August 2021

Investor prospectus law change proposed

The Government has suggested updating the law to change the circumstances in which a formal document is required when inviting investment in a Jersey company.

Under the current law, a prospectus – a document outlining a company’s details which is circulated to potential investors - must be produced whenever more than 50 people are invited to become a member of a Jersey company.

The Government said it was aware some consider this requirement burdensome and costly, and suggest it 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 €100,000 (£85,253);
  • 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.

A consultation has been launched on the proposed changes and islanders, especially Jersey’s business community, is being invited to share their views before 7 September.


Sign up to newsletter



Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.

Once your comment has been submitted, it won’t appear immediately. There is no need to submit it more than once. Comments are published at the discretion of Bailiwick Publishing, and will include your username.

There are no comments for this article.

To place a comment please login

You have landed on the Bailiwick Express website, however it appears you are based in . Would you like to stay on the site, or visit the site?