PRESS RELEASE 2 June 2009
CONSULTATION ON CERTIFIED FUND PROSPECTUSES
The Commission has today published a Consultation Paper in respect of prospectuses for collective investment funds issued with a certificate in accordance with the Collective Investment Funds (Jersey) Law 1988.
At the moment regulations relating to the contents of prospectuses are split between the Collective Investment Funds (Unclassified Funds) (Prospectuses) (Jersey) Order 1995 and the Companies (General Provisions) (Jersey) Order 2002 depending on whether the fund is constituted as a company or a unit trust, and whether it is open-ended or closed-ended.
There are no formal regulations covering certified funds constituted as limited partnerships, limited liability partnerships or closed-ended unit trusts. Until now the Commission has imposed requirements on those funds based upon the two existing Orders, although there is no formal basis for doing so. The intention is to remedy that situation by having just the one Order covering all types of certified fund no matter how the fund is constituted and irrespective whether it is open-ended or closed-ended.
The proposed Collective Investment Funds (Certificated Funds – Prospectuses) (Jersey) Order 200- (the “Certified Funds Prospectuses Order”) is an amalgam of the two existing Orders together with some new prospectus requirements. For example:
- The prospectus must make clear what happens to any funds raised if the launch of the fund does not proceed.
- The prospectus must state any limitations on the custodian’s duty to safeguard fund assets.
Many of the new provisions have been required by the Commission for some time as a matter of best practice. The Certified Funds Prospectuses Order puts these requirements on a formal footing for the first time. Following the change, the Companies (General Provisions) (Jersey) Order 2002 will apply only to public companies that are not collective investment funds, and the Collective Investment Funds (Unclassified Funds) (Prospectuses) (Jersey) Order 1995 will be revoked.
A copy of the Consultation Paper can be downloaded from the Commission’s website at www.jerseyfsc.org.
The Commission is seeking comments from interested parties by 31 August 2009.
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For further information please contact: -
David Banks - Director of Securities
Tel: + 44 (0) 1534 822040
Fax: + 44 (0) 1534 822001