PRESS RELEASE 3 August 2006
Consultation paper on proposed changes to the Jersey Expert Fund Guide
The Commission has today issued a consultation paper on proposed changes to the Jersey Expert Fund Guide (the “Guide”).
The main proposed 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 on non-expert investors – insertion of a reminder that professional intermediaries must ensure that an investment in the Expert Fund is suitable for the underlying investor.
- Minimum investment – clarification that the minimum investment criterion of $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.
David Carse, Director General of the Commission, said: “In general, the Guide has been extremely successful in achieving its objectives and it is not considered that substantial changes are required. Despite this, a number of enhancements can usefully be made. These have been discussed and agreed with industry representatives under the auspices of Jersey Finance Limited, and are now being presented for wider industry consultation.”
The consultation paper can be viewed by Clicking Here.
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For further information, please contact:
Jersey Financial Services Commission
Tel: + 44 (0) 1534 822011
Fax: + 44 (0) 1534 822001
Notes to Editors.
1. The Commission launched the Guide in February 2004. The Guide introduced a streamlined process for authorising and establishing collective investment funds to be offered only to ‘expert investors’ (as defined in the Guide).
2. Comments on the proposed changes to the Guide are sought by 7 September 2006.
3. A copy of the consulation paper can be downloaded from the Commission's website at www.jerseyfsc.org.