PRESS RELEASE 9 November 2006

Issue of revised Expert Fund Guide

The Commission has today issued a revised Expert Fund Guide (the “Guide”) following a period of public consultation.

The main revisions to the Guide are:

• Stock exchange listings – clarification that an Expert Fund may be listed provided certain criteria are met so that the holding of units in the fund is always restricted to expert investors.
  
• Transfers of interests – new criteria introduced to reinforce the principle that a transfer of interests in an Expert Fund should only be to another expert investor.
  
• Acquisition on behalf of non-expert investors – insertion of a reminder that professional intermediaries should be satisfied that an investment in an Expert Fund is suitable for the underlying investor.
  
• Minimum investment – clarification that the minimum investment criterion of US $100,000 relates to the initial investment in the Expert Fund.
  
• Location of investment manager – a broadening of the range of permissible jurisdictions in which the investment manager may be established.
  
• Due diligence – clarification of the Jersey functionary’s responsibilities.
  
• Span of control – introduction of text to recognise that there may be cases where there are exceptional circumstances justifying a degree of relaxation from the Commission’s normal policy.

In addition, a number of minor changes are proposed to introduce greater clarity or flexibility.

John Harris, Director General of the Commission, said, “The Jersey Expert Fund regime was introduced into Jersey nearly three years ago and has proved highly popular with investors, the funds industry and their advisors. Industry has requested these changes in order to clarify the Commission’s position on a number of issues that have arisen during that time, and the Commission has responded promptly to such requests. I am confident these changes will not only assist in further promoting Jersey Expert Funds outside the Island but will also serve to enhance the efficiency by which such funds are processed by the Commission.”

The Guide can be viewed by Clicking here

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For further information, please contact:

David Banks
Director, Securities
Jersey Financial Services Commission

Tel: + 44 (0) 1534 822048
Fax: + 44 (0) 1534 822002
Email: d.banks@jerseyfsc.org