PRESS RELEASE 03 April 2007

Commission Publishes Draft Requirements to Implement the Proposal for the Future Regulation of Funds and Functionaries of Funds

The Commission has today published a Position Paper detailing the requirements to implement the future regulation of funds and functionaries of funds. This process involves transferring regulation of functionaries under the Collective Investment Funds (Jersey) Law 1988 (the “CIF(J)L”) to the Financial Services (Jersey) Law 1998 (the “FS(J)L”). This applies to all functionaries other than those relating to recognized funds and the fund company itself. It is the stated long-term aim of the Commission to bring regulation of all financial services business operating in Jersey within the FS(J)L.

In February last year the Commission published two consultation papers proposing that regulation of functionaries to unclassified funds be transferred from the CIF(J)L to the FS(J)L. This would be achieved by creating a new category of financial service business under the FS(J)L to be called “fund services business”.

The advantage of this new “one licence” regime would be the removal of the requirement for functionaries to hold multiple permits under the CIF(J)L. Instead, functionaries will require to be registered under the FS(J)L to carry on fund services business from within Jersey. Every fund services business will be supervised under the FS(J)L and the Commission proposes to issue Codes of Practice in the form attached to the consultation paper.

Consultation has taken place with Industry concerning the proposals and Industry has indicated its support. Consequently the draft legislation published today is intended to implement the proposals. In addition, the opportunity has been taken to update the draft Codes of Practice for fund services business to take into account changes to the anti-money laundering provisions and to align them with changes made to the Codes of Practice for trust company businesses. It is intended to bring the changes into effect in July 2007.

The Position Paper, together with the draft legislation, is available by clicking here. However, due to the volume of the documentation, only the Position Paper will be made available in hard copy at the Jersey Library.

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