Ogier Counsel Sophie Reguengo to speak on substance requirements at Jersey real estate event

Ogier Counsel Sophie Reguengo to speak on substance requirements at Jersey real estate event

Assessing and reporting on compliance with economic substance requirements in Jersey is gaining momentum as fund managers embrace the Island's new Economic Substance Law.

Investment funds and regulatory specialist at Ogier, Sophie Reguengo, will tell an audience of real estate fund specialists at a real estate conference in June that, since fund managers are in scope for the purposes of Jersey's new substance law, they must comply with the new requirements if they generate gross income from managing the fund.

"Compliance includes demonstrating that the fund manager is directed and managed in Jersey and also conducts its core income generating activities in the Island. Failure to do so risks suffering progressive sanctions such as financial penalties, disclosure and striking off from the register,” she said.

Check points include:

• Reviewing outsourcing, delegation and control arrangements between fund managers and their service providers, specifically considering whether arrangements dealing with investment and risk decisions meet the Substance Requirements
• Reviewing whether entities within the fund manager's group that carry on intra-group financing, intra-group service arrangements or holding company activities may fall within scope of the Substance Requirements
• Determining whether amendments and updates are required to contracts, policies and procedures, outsourcing arrangements, offering memoranda and board resolutions and procedures as a result of the Law

BPP's 4th Annual Real Estate & Real Estate Funds Conference takes place on 18 June at the Radisson Blu Waterfront Hotel.

Contact sophie.reguengo@ogier.com for advice on substance requirements and the implications for real estate fund managers.