Jersey To Widen Fund Prospectus Rules
Friday, August 19, 2011
The Jersey Financial Services Commission has published feedback on two consultations, on Certified Fund Prospectuses, and on Codes of Practice
for Certified Funds, both issued in 2009.
The first consultation paper, number 5 of 2009, sought comment
from the industry on proposals to improve disclosure in prospectuses for all
types of certified fund. As a result, it is proposed that: a new Order, the Collective Investment
Funds (Certified Funds - Prospectuses) (Jersey) Order 201- be introduced; that
the Companies (General Provisions) (Jersey) Order 2002 be amended; and the Collective
Investment Funds (Unclassified Funds) (Prospectuses) (Jersey) Order 1995 be
The proposals seek to address the fact that the 1995 Order currently applies
only to open-ended funds, not closed-ended funds, and does not apply at all
to funds constituted as limited partnerships or limited liability partnerships.
Furthermore, there are a number of relatively minor matters required by the
International Organization of Securities Commissions' Principles that are not
presently required by the local regulatory framework. Lastly, the Companies General Provisions Order is limited to funds that are
constituted as closed-ended companies.
The proposals therefore seek to introduce formal regulations covering closed-ended
funds constituted as limited partnerships, limited liability partnerships or
unit trusts, or open-ended funds constituted as limited partnerships or limited
The second consultation paper, number 7 of 2009, proposed to introduce Codes
of Practice for Certified Funds (the Certified Fund Codes). The key benefit
of the introduction of Certified Fund Codes, the Financial Services Commission said, is the simplification of administrative
processes whilst maintaining the regulation of fund service providers and certified
funds in a manner that is consistent with international standards.
The intention is for the Certified Fund Codes to be introduced towards the
end of 2011.