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PRESS RELEASE 7 November 2002

JERSEY CONSULTS ON STREAMLINING POLICY FOR NON-RETAIL FUNDS

The Jersey Financial Services Commission this week began consultations on plans to streamline the way specialised private funds designed for sophisticated and expert investors are authorised. The consultation period, which ends early in the New Year, will be followed by changes to JFSC authorisation practices in the short term and to legislation in the longer term.

The move follows the growing international trend to distinguish between regulatory requirements for investment vehicles aimed at expert investors and institutions and those sold to retail investors. The Commission's aim is to rely on disclosure by regulated businesses rather than restrict the structure and operations of such funds.

Key issues raised in the consultation document will be:

  • Creating a clear definition of an expert investor
  • Setting out a clear statement of the different types of fund categories appropriate for authorisation under the new rules
  • Defining the information a fund has to make available to potential clients
  • Preparing a revised statement on the rules governing promoters of funds

Jersey consults on non-retail fund policy

  • Streamlining procedures by agreeing short term changes to the authorisation process - including the introduction of codes of practice to enable self-certification of compliance by regulated fund promoters
  • Reviewing the requirements for the authorisation of promoters for the more private expert investor funds
  • Outlining longer-term plans to bring the regulation of funds within the requirements of the Financial Services (Jersey) Law 1998 - placing the onus on the authorisation of the fund administrators

JFSC director general, Richard Pratt, said: "Jersey's funds management industry is continuing to prosper despite the turmoil in the stock markets worldwide. It is now placing increased focus on specialist private funds aimed at sophisticated private investors and their advisers, institutions and professional fund managers. The Commission is consulting on how we can help the industry continue to grow by streamlining procedures for fund promoters in this sector - while at the same time setting out rigorous requirements for disclosure of all relevant details about new funds to ensure the protection of potential clients.

The consultation paper, "Funds and Promoters", is now available on the Commission's website, please click here.

For further information please contact:-

Roger Bignell, Director of Authorisation

Tel: + 44 (0)1534 822040
Fax: + 44 (0)1534 822047
E-mail:r.bignell@jerseyfsc.org

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