Walkers Jersey team advises Bank Frick on the launch of platform involving the securitisation of digital assets and issue of AMCs

The platform enables the bank to support third party investment managers to form a protected cell to follow the investment manager's investment strategy and issue actively managed certificates (AMCs) to professional investors. 

The first investment manager to launch a cell on the platform has a strategy to acquire digital assets, meaning that this is possibly the first white-labelled securitisation platform in Jersey where a protected cell will be securitising digital assets. A number of further cells have been formed for other investment managers following various investment strategies, demonstrating the popularity and interest in the platform and Jersey as a jurisdiction for issuers of AMCs.

The Walkers team, led by group partner Dilmun Leach, advised on the Jersey law elements of the launch, working with Liechtenstein counsel, Paragraph 7, and Jersey administrator, Vistra. The Walkers team also included senior counsel, Kirsten Faichnie and associate, Adam Diamond. 

Dilmun Leach said: “We are delighted to have been able to support the launch of this innovative platform. This is genuinely novel work and has been a tremendous partnership between all involved.'

“It is also pleasing that Jersey was chosen as jurisdiction for the platform. We are seeing lots of new structures and interest in the debt capital markets space due to the island's track record and proportionate regulatory environment.'

Raphael Haldner, Head of Fund and Capital Markets at Bank Frick, added: “We are immensely pleased with the partnership and our decision to choose Jersey as our jurisdiction. This initiative notably enhances our capabilities in Capital Market Services, thanks to the support and know-how of all involved. The successful launch of this platform signifies an important milestone in our strategic journey, indicating a major progression in this area.”

Jersey was chosen for the jurisdiction of the platform given the statutory ring fencing of assets and liabilities that a Jersey protected cell company offers, in addition to the proportionate regulation of such structures requiring approval from the Jersey Registry for the issue of the AMCs, and in particular given the investment strategy involves investment in digital assets. The platform is also subject to the usual registrations and rigorous level of customer due diligence as required for Jersey products of this type.

Jersey issuers of structured products and securitisation vehicles generally fall outside of more onerous regulations given that (broadly) the AMCs will only be issued to professional investors who acknowledge suitable risk warnings.

Walkers in Jersey has a leading cross-practice debt capital markets, fintech, regulatory, corporate and investment funds team who are at the cutting edge of innovative financial services products including AMCs, collateralised loan obligations (CLOs), note issuers, securitisation vehicles, and 'tokenisation' issuers and platforms. Our Jersey team works seamlessly with colleagues in Cayman, Ireland, Bermuda, London, Guernsey and our other four offices on projects such as this.